Government should heed to taxpayers’ anger
There may be plenty of hot air around about tax boycotts – but the reality is that our tax system is so strict that there are few ways people can evade paying tax.
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Finance Minister Malusi Gigaba is correct when he says the R50.8 billion revenue shortfall for this financial year is not due to any tax boycott.
The sluggish performance of the economy means people are earning and spending less – which means there is less to go around for tax.
There may be plenty of hot air around about tax boycotts – but the reality is that our tax system is so finely crafted and strict that there are few ways people can evade paying tax.
And, tax authorities will always have the law on their side when they prosecute individuals or businesses for shirking their responsibilities.
However, the minister is clearly worried, because he threatened “we will revolt against those who revolt against paying taxes”.
There are clear indications, too, that government is becoming more desperate. A few years ago, SA Revenue Service (Sars) advertisements urged people to “do the right thing” and pay tax; now they threaten people with criminal action if they don’t.
The tax ombudsman also found recently that there was evidence that Sars had been withholding legitimate refunds to taxpayers in an effort to hold on to money for as long as possible.
And then there was a suggestion that South Africans working abroad could face double tax.
The heavy hand is going to become increasingly necessary as taxpayers become more reluctant to pay up, given what many see as the blatant squandering of their hard-earned money by corrupt politicians. We do not believe a tax boycott is the solution.
Those of us fortunate enough to be able to pay taxes have a social responsibility to help care for those who are destitute and to keep our country running.
But the government cannot, and must not, ignore the rising anger out there.
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