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Dear Pauli
Thanks for your queries. Find SARS responses listed below. However, overall
The emails to which you reference, relate to the debt book. At the onset, it is
important to note that the SARS debt book is a compilation of historic debt and
debt in the current fiscal year. Taxpayers have numerous reasons for having
the confines of the legal framework to collect the debt, SARS cannot guarantee
that debt from the debt book will be collectable in the current period this is part
Additionally, this time of year calls for an all hands on deck approach with
regards to the final stretch with respect to revenue collection efforts. Focusing on
collectable debt and channelling most of our resources to the revenue collection
drive to ensure that Government can bank on the revenue that SARS committed
1. The emails very strongly indicate that Sars has been manipulating its debt
At the onset, SARS is not manipulating the debt book. It is important to note that
the debt book has no direct impact on collection figures as SARS accounts for
collections on a cash basis. Any delay in the raising of assessments beyond this
period would have no impact on the reported collection figure for the current
financial year.
As with other areas of the SARS business, SARS focuses all efforts on meeting
our revenue collection target at this time of year. Officials from the debt space
focus on revenue collection effort and resume their usually responsibilities post 1
April.
2. Were you briefed about the directive to manipulate Sars' debt book?
The SARS debt book has not been manipulated through the delay of
untoward with regards to refund delays. Do you still hold this view?
We still hold this view. As context, the SARS Investigative Audit conducts all audit
original return has a refund, that refund will be paid out directly to the taxpayer.
If a taxpayers original return has a debt due to SARS, that debt would remain
refund, the audit has determined that the taxpayer is not entitled to the entire
refund and reduces it accordingly. The taxpayer then is paid out the remaining
refund, if any. (This is not blocked and has no bearing on the debt book)
liability for the taxpayer. This assessment debt reflects on the debt book about a
The request in the email, to which you refer has nothing to do with delaying
refunds as refunds do not impact the debt book. Audit cases were conducted and
completed normally during this period with the above outcomes, except a few
per the normal audit process with outcomes in all three categories above.
Only 14 SMME and 3 large business cases that could have been completed in
the two-week period prior to 15 February 2017 were finalised on the days
following. These cases had large assessments that would not have been worked
As part of the revenue collection cycle, the debt teams focus is on ensuring that
all debt that has been raised is collected therefore the request below.
The number of audit cases completed is line with normal trends for the year and
this period. All taxpayers that are audited through this process are engaged and
Note that the issue referred to does not relate to normal verification type audits
conducted.
We still hold this view. Any delay in assessments has not been impacted by the
release of legitimate refunds under audit. Refunds have no direct bearing on the
debt book.
4. Do you deny that by cooking the books in this manner, the problem is only
there is no manipulating of the debt book. As part of our revenue collection cycle,
the teams focus moves from raising assessments to a focus on ensuring that all
debt that has been raised is collected. This is to ensure that the fiscus has
5. How many assessments have been raised between January 16 and February
15 2017?
712 SMME and 47 Large Business audit assessments across all tax types have
6. How many assessments were delayed and only raised in the period after
February 15?
7. Do you agree that this gives credence to public complaints about Sars delaying
refunds and the spike in complaints to the Office of the Tax Ombud?
What is important to note is that the debt book does not impact the payment of
refunds. In respect of audits, there is direct engagement with taxpayers who are
subject to an audit. SARS keeps such taxpayers informed on the progress of
audits.
SARS MEDIA