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“We are angry and outraged by the corruption and waste in government, but at the same time, if you were to withhold your money, you would harm and hurt the most vulnerable in society. In SARS we defend the poorest, ”said Sars Commissioner Edward Kieswetter.
Professor Jannie Rossouw, Acting Director of the Wits Business School, agrees that the poor will suffer if South Africans stop paying taxes. She also notes that most people do not have the option of paying taxes, as their taxes are automatically deducted if they receive a salary.
“There is also the question of whether there will be the capacity to collect the pending tax.”
The principle is that a tax revolt will not mean much. “If the people are not happy with the government, they must make changes at the polls,” he said.
Patricia Williams, a Bowmans tax attorney, says that if paying taxes depended on morality, there would be a tax revolt, which is why she prefers to call it tax compliance.
“People choose not to pay taxes by also closing their businesses and moving to other countries because they are not satisfied with the way Sars treats them.”
She says there are multinational companies that say they cannot do business in South Africa because by doing so they would be funding corrupt activities.
Johan Troskie, an independent tax attorney, says that a tax revolt would be a good way to bring the government to its knees, but the problem is that Sars is structured in a way that makes a tax revolt impossible.
“Corporate South Africa collects the majority of taxes on behalf of Sars and only a minimal portion of taxpayers pay taxes individually.”
Kieswetter said during the briefing that Sars currently has limited resources.
“We need to increase our auditing, criminal investigation and forensic auditing capacity, as well as the customs and financial structure.”
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