Monday, April 2, 2012

SARS - Construction Sector Under the Microscope

Many would have seen today’s front page article in the Mercury titled ‘Gordhan’s warning to tax defaulters’.

The article reports that government will soon be implementing stringent measures in order to reign in tax defaulters and while they acknowledge that there has been an improvement on overall tax compliance, trends indicate that constant monitoring is a necessity.

Speaking in Pretoria at the launch of the SARS compliance program, the minister made it known that research has indentified particular areas in our economy as high risk sectors and that attention would be directed towards them.

Gordhan named the construction sector as having significantly lower levels of compliance and strongly implied that those who have received government tenders, are among those likely to be placed under the microscope.

“I think we need to take a much harder line. This is not just formal business, these are people who benefit by overcharging government through the inflation of invoice prices, let’s call them beneficiaries and culprits – they must now be brought to book”

Gordhan also announced that a formidable team of experts would be set up to review the trust system, which he stated is being abused by the wealthy without declaring appropriate tax remittance.

Mercury Article Download (PDF)

Ernest Roper
Regional Manager Durban



No comments: