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There is nothing more important than stabilising and restoring the South African Revenue Service into an institution that is credible in the eyes of the South African public.
This was said by Finance Minister Nhlanhla Nene on Monday, as he officially opened the tax season for this year.
Nene said that the government had three immediate objectives – to stabilise Sars, restore its credibility and to strengthen its capacity to collect revenue and meet revenue targets.
In this regard, there were two processes currently underway.
The first is the commission of inquiry into tax administration and governance in Sars. The commission was appointed by President Cyril Ramaphosa, and began its hearings last week.
The second was the disciplinary hearing of the Sars Commissioner, a process also that was also driven by the Presidency.
Nene said the ministry of finance and national treasury would continue to work with the revenue service’s management team to ensure that the institution stayed the course and delivered on its mandate.
“It is doubtful that there is any single agency in government whose operational performance is more critical to the work of government than Sars.
"It is common knowledge that government would not be able to meet its social objectives without the taxes and other revenues that are collected ... When spent effectively and efficiently, these revenues can contribute to the improvement of the skills and the living standards of fellow South Africans,” Nene said, adding that the revenue service needed to do its work without fear, favour or prejudice.
Meanwhile, the inquiry into the revenue service ended its first round last week, but faced some resistance from suspended South African Revenue Services commissioner Tom Moyane, who had attempted to halt the Sars inquiry pending the outcome of the disciplinary inquiry into his conduct while at the helm of the organisation.
Retired Judge Robert Nugent was expected to hand down his ruling at 2pm on Monday on whether he would accede to Tom Moyane’s demands.
Nene addressed Sars employees directly, promising that he would do everything in his power to help them do their job.
“I know that you must be very anxious about the processes currently underway regarding the leadership of Sars. All I can promise you is that Sars is too important an institution and we shall do all in our power to ensure that it lives up to its mandate,” he said.
“From my previous role as both deputy minister and minister, I know how hard you work to serve taxpayers and South Africa in general. I am sure that this year will be no different. And for that, South Africa owes you a great debt of gratitude.”
He also thanked Mark Kingon, who stepped in to fill the commissioner role left vacant by Moyane’s suspension, for “holding down the fort and for providing excellent leadership to the men and women of this wonderful organisation."
He said this tax filing season, which kicked off on Monday, wasn’t about how much revenue the service would be able to collect.
“It is about compliance. It is about all taxpayers complying with their obligations to submit the returns they are required to submit.”
