Briefing Parliament’s standing committee on finance, National Treasury deputy director general Ismail Momoniat said the commission would look into possible transgressions related to tax legislation, which include the Tax Administration Act, the Sars Act and the VAT (value-added tax) Act.
According to a document tabled in the committee the commission of inquiry would look into the “adequacy and legality of steps that Sars took to address revenue shortfalls in the last two years, including the unauthorised payment of bonuses to top executives and withholding of refunds to ordinary taxpayers”.
The commission would also look at how suspended Sars commissioner Tom Moyane and his executives adhered to tax administrative processes as it related to “VAT refunds, mining rehabilitation funds”.
During his state of the nation address, President Cyril Ramaphosa announced the commission of inquiry into tax administartion and governance at Sars. The revenue service missed its target this year, reporting a shortfall of R800 million for 2017/18.