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<p>Edward Kieswetter, Commissioner for South African Revenue Service spoke with CNBC Africa&#8217;s Godfrey Mutizwa on expectations and targets for the 2021 tax season.</p>


Edward Kieswetter on expectations for the 2021 tax filing season

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<p>Edward Kieswetter, Commissioner of the South African Revenue Service charged with the job of collecting the country&#8217;s dwindling tax in the teeth of the COVID-19 pandemic. How much are we missing, how much did the ban on alcohol and cigarettes cost the county&#8217;s coffers? What can be done about it? He joins CNBC Africa for more.</p>


Here’s how much tax SA has lost to COVID-19 induced alcohol

Here’s how much tax SA lost due to COVID-19 induced alcohol, tobacco ban

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<p>At a time when the South African government plans to pour billions into reviving the economy the tax people say it will have less to play with in future. SARS Commissioner Edward Kieswetter told the press this afternoon that tax collection was likely to have lost at least R285 billion so far through the COVID-19 lock-down and was likely to lose between 15 and 20 per cent of the annual tax take. He joins CNBC Africa for more.</p>


COVID-19 bites into SA’s tax revenue


<p>By Monique Vanek </p>



<p>South Africa is losing more than R100bn ($5.6bn) in tax revenue due to people not paying and fiddling their returns. The tax collecting authority estimates nearly half of South African companies aren&#8217;t paying tax on behalf of their employees and others are avoiding them. This was the word from South African Revenue Service (Sars) Commissioner Edward Kieswetter on Wednesday as he presented the preliminary revenue collection results for 2019/2020.</p>



<p>He said it may even be more than an R100bn and is working with the Davis Tax Committee to find out if there is more. The committee assesses South Africa’s tax policy framework to support inclusive growth and employment.</p>



<p>“Our initial assessment suggests the number is higher,”
Kieswetter surmised. </p>



<p>Kieswetter attributed the loss to three factors:</p>



<ul><li>General non-compliance &#8211; conscious or unconscious. This includes under disclosed taxes and not paying PAYE on time. Only 57% of companies are complying, which is incredibly low, he said.</li><li>Aggressive tax planning, such as transfer pricing abuse, base erosion and profit shifting by large corporates</li><li> Criminal activities, such as VAT fraud. The commissioner noted that there has been a significant increase in fraudulent claims and the creation of fictitious companies for this purpose. He had harsh words for those engaging in this practice stating that they are stealing money from the fiscus. He estimated that Sars suffered a revenue compromise of R8bn-10bn this year of which R6bn stemmed from companies accessed to be bogus.</li></ul>



<p>Sars plans to get tough this year on tax dodgers by using machine learning and artificial intelligence to hunt down fraudulent claims.</p>



<p>The commissioner also revealed that despite a weak economy, Sars as of midnight managed to collect R1.4trn in tax revenue &#8211; growth of 5.3% for the 2019/2020 year. Most of the revenue was raised from personal income tax (R528.9bn or 39%), followed by value-added tax (VAT) contributing R346.6bn (25.6%), company income tax: R214.7bn or 15.8% and customs duties at R55.4 billion (4.1%). </p>



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South African Revenue Service is losing more than R100bn in tax, this is why…

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<p>SARS Large Business Centre has reopened. The business unit, aimed at encouraging tax compliance from ultra-high net worth individuals and large companies, was dismantled in 2015 but has opened again with renewed purpose. CNBC Africa spoke to Commissioner Edward Kieswetter on the back of the launch.</p>


SARS reopens Large Business Centre

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<p>With just over 30 days in office, SARS Commissioner Edward Kieswetter has been clear about cleaning up the nation’s tax collection agency. CNBC Afria&#8217;s Kopano Gumbi spoke to him about what to expect from SARS.</p>


Edward Kieswetter on creating a culture of voluntary compliance at SARS

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<p>Yesterday the country received an announcement from National Treasury about the official appointment of the new SARS boss. Edward Kieswetter will take over as commissioner effective from May 1st. Kieswetter served as SARS’ deputy commissioner between 2004 and 2009, he now returns with high expectations for the role. He joins CNBC Africa for more.</p>


Edward Kieswetter steps in as new SARS boss


<p>President Cyril Ramaphosa has appointed Edward Kieswetter as the new Commissioner for South African Revenue Service (SARS) with effect from 1 May 2019 for a term of five years.</p>



<p><em>Read the full statement below&#8230;  </em></p>



<p>The process for the appointment of the SARS Commissioner is informed by the South African Revenue Service Act and was guided by the recommendations of the Commission of Inquiry into Tax Administration and Governance by SARS chaired by retired Judge Robert Nugent.  </p>



<p>Among other things, the Nugent Commission recommended that the “candidate or candidates for appointment should submit to a private interview by a panel of four or more members selected by the President”, that the panel should make recommendations to the President and that the recommendations of the panel “should be made public”.  </p>



<p>The independent selection panel was chaired by former Minister of Finance Trevor Manuel and composed of the following members: • Ms. Angela Bester • Justice Dennis Davis • Ms. Sindi Mabaso-Koyana • Mr. Ismail Momoniat • Ms. Thandi Orleyn • Mr. Fezekile Tshiqi  </p>



<p>The position was advertised on 16 December 2018 and applications closed on 18 January 2019.  </p>



<p>Enquiries: Communications Unit Email: media@treasury.gov.za  Tel: (012) 315 5944  </p>



<p>The following six (6) candidates were shortlisted and invited to the final interviews: • Mr Nathaniel Mabetwa • Ms Sunita Manik • Mr Edward Kieswetter • Mr Mark Kingon • Mr Gene Ravele • Ms Nazrien Kader </p>



<p>The Minister of Finance submitted the panel’s report and his recommendation to the President on Monday, 25th March 2019. The President has accepted the Minister’s recommendation.  </p>



<p>The National Treasury is confident that the process undertaken has integrity and all necessary disclosures were made and no conflicts of interest have been identified throughout this process. </p>



<p>Mr Kieswetter emerged as the strongest candidate, based on his past experience as Deputy Commissioner for SARS between 2004 and 2009, and his subsequent track record of transformative leadership and his experience of turning around a large institution.  </p>



<p>During his tenure at SARS, Mr Kieswetter established the Large Business Centre and High Net Worth Individual Unit, leading to both compliance and revenue collection improvements. As Group Chief Executive of Alexander Forbes Group Holdings he achieved a significant turnaround of the group, with particular attention to governance, integrity and restoring the group’s reputation. </p>



<p>President Ramaphosa said: “We have every confidence that Mr Kieswetter has the experience, integrity and skills required to turn SARS around by restoring revenue collection, redirecting operations toward innovation, developing future leaders for the organisation, and restoring SARS’ credibility and integrity.” </p>



<p>Minister Mboweni wishes Mr Kieswetter success in this endeavour, and looks forward to seeing SARS re-established as a respected tax collector and improved revenue collection outcomes. “I expect him to act without fear or favour, to restore and defend the integrity of SARS and to uphold taxpayer rights when carrying out his duties as the Commissioner, by implementing the recommendations of the Nugent Commission and restoring SARS to a world-class organisation,” Minister Mboweni said.   The independent selection panel’s terms of refe</p>


SARS appoints new commissioner

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<p>Transnet CEO, Siyabong Gama, remains fired. The company board made the move whilst a process of arbitration was expected to take place as ordered by labour court last Friday. To get more details about this move and where to for Transnet, CNBC Africa is joined by board member Prof. Edward Kieswetter.</p>


Edward Kieswetter

Edward Kieswetter on expectations for the 2021 tax filing season

Here’s how much tax SA lost due to COVID-19 induced alcohol, tobacco ban

COVID-19 bites into SA’s tax revenue

South African Revenue Service is losing more than R100bn in tax, this is why…

SARS reopens Large Business Centre

Edward Kieswetter on creating a culture of voluntary compliance at SARS

Edward Kieswetter steps in as new SARS boss

SARS appoints new commissioner

Transnet board gets rid of CEO Siyabong Gama

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Edward Kieswetter

Edward Kieswetter on expectations for the 2021 tax filing season

Here’s how much tax SA lost due to COVID-19 induced alcohol, tobacco ban

COVID-19 bites into SA’s tax revenue

South African Revenue Service is losing more than R100bn in tax, this is why…

SARS reopens Large Business Centre

Edward Kieswetter on creating a culture of voluntary compliance at SARS

Edward Kieswetter steps in as new SARS boss

SARS appoints new commissioner

Transnet board gets rid of CEO Siyabong Gama

News Tips

Advertise With Us

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