Auto-assessment streamlines tax compliance, says SARS Commissioner
Prof Edward Kieswetter was the keynote speaker at the annual iLembe Chamber of Business Breakfast.
SARS is working hard to make payment of income tax as easy and seamless as possible.
Addressing the annual iLembe Chamber of Business @ Breakfast at Canelands Beach Club and Spa last Friday, SA Revenue Service commissioner Prof Edward Kieswetter said the service had devised an auto-assessment based on data received from employers, financial institutions, medical schemes, retirement fund administrators, and other third-party data providers.
The assessment is sent to every non-provisional taxpayer with a request for approval.
“If you agree with your auto-assessment, there is nothing further to be done,” he said.
While there is a route to take if the taxpayer disagrees, Prof Kieswetter said that 90 percent of assessments sent out had been accepted without question.
The commissioner further highlighted that the importance of fiscal citizenship.
He said that governance and stewardship of the economy, regardless of one’s status in society, should involve a willingness to pay taxes in a fair system. SARS’ focus on compliance has contributed to a 6.5% annual increase in collection growth, but it has also resulted in a 7.5% increase in refunds. In the latest survey SARS scored 75% in public trust, continuing the improvement in this figure over the last 5 years.
Kieswetter underscored the significant role SARS plays in trade facilitation, based on the simple notion that citizens would prefer to be self-reliant rather than dependent on a SASSA grant.
“If you pay taxes fairly, you can stand back and say, ‘In a small way, I have done something.'”
He encouraged people to work together and help one another to improve the country, noting that South Africa needs bridges, not high walls.
The iLembe Chamber CEO welcomed Kieswetter’s recognition of the economic relevance and significance of the KZN province, where 60% of trade is handled through the ports of Durban and Richards Bay.
“The tax practitioners in the audience were especially encouraged by his view that ‘tax should be a non-event,’ with a focus on administrative efficiency rather than higher taxes. He advocated that good fiscal citizenship is not an engineering or physics issue, but a DNA issue,” said Oelofse.
Business@Breakfast is sponsored by iLembe Chamber of Commerce, the Robert Group and The North Coast Courier.
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