JOHANNESBURG - Due to years of corruption, South African taxpayers may start withholding their tax payments, which could result in the country seeking an international bailout.
On Monday at the Tax conference, newly appointed South African Revenue Services (Sars) Commissioner Edward Kieswetter said that falling trust in the collector by individuals and companies resulted in increased levels of tax avoidance and fraud. He said this resulted in the government losing billions.
"The withholding of funds may ultimately lead to an international bailout from an organisation like the International Monetary Fund (IMF)," said Kieswetter.
He further added that when public trust wanes, such as in this current situation it results in taxpayers feeling morally justified to withhold or manipulate their taxes.
In an attempt to establish the degree of trust that South Africans have in public institutions, Sacs a marketing and consultancy specialising in national research studies conducted a survey to determine the credibility of these institutions.