ASSESSMENT

Assessment Improved and streamlined processes Improved turnaround times No backlogs in the assessment of returns Reducing outstanding returns Quicker refunds Improve payment processes including the

ability to pay through banks Improved assessing skills

Assessment: Achievements Returns Processed

IT 4.1 million VAT 2.98 million PAYE 2.2 million

Increase in register IT 9% VAT 6% PAYE 8.1%

PAYE Reconciliations 96,6% finalised of Reconciliations received

Improved debt equalisation process: Value of refunds equalised to debt = R1,65 billion.

Reduction of R10,3 million or 25% in VAT refunds paid. Successful Filing Campaign – 11.76% increase in returns received Call center upgrade and implementation Increase in E-Filing

Assessment : KPA’s1. To effectively manage and administer the registration

process

2. To effectively manage and administer the filing process

3. To ensure quality and timeous assessing / processing

4. To ensure timely & accurate payment / refunds process

5. To ensure efficient document management

6. To optimise Revenue collection

ENFORCEMENT

Enforcement The tax and customs enforcement program -

increased revenue from audits and successful criminal prosecutions.

Has enhanced government’s anti-crime strategies.

SARS has increased the number of audits performed; significantly increased the skills;

More effectively combating improper tax planning, Customs transgressions and outright fraud.

Enforcement: Overview Results 2003 / 2004

Number of staff

Number of cases attended to

Revenue implications

Audit 1 270 58 054 R 20,4 bil assessments raised

Criminal Investigations

144 1 430 Admin cases completed120 Serious casesTotal: 6 258(1 558 convictions)

R 3,6 bil assessments raised

Collections Debt

Outstanding returns

812

483

2 876 486 (outstanding returns collected)

R 22,6 bil collected

TOTAL 2 709

Prosecution Results

DESCRIPTION: NATIONAL TOTALS FOR 2003/2004

Actual fines R 4,543,460.00

Imprisonment (years) 84

Suspended fines R 75,000.00

Suspended imprisonment (years) 107

Repayment to SARS R 39,593,471.00

Caution (number) 1

Correctional service (years) 3

Other Property forfeited to SARS - value R 3 million

Enforcement : KPA’s1. To develop a strategy to enforce the law amongst those that are actively non-

compliant

2. To develop a strategy for control and deterrence

3. To develop a comprehensive Risk analysis

4. To develop and publish a Compliance Plan for 2005/06

5. To ensure optimal Revenue collection

6. To implement an audit programme

7. To carry-out visible compliance actions

8. To conduct Criminal investigation:

9. To effectively manage Debt

CUSTOMS

Customs

Customs’ role is : firstly the protection of the South African

economy and security of its people, facilitation of trade.

Customs’ staff has grown from about 800 to over 2 400 over past 3 years

Now better able to fulfill its mandate

Customs: Achievements Container Security Initiative

Bilateral agreement with USA customs in the fight against international terrorism and economic crimes

ICRAS Integrated Customs Risk

Analysis Solution designed to improve risk profiling

E-learning Use of interactive multi-

media, on-line learning facility, which is an automated training tool

Electronic Permit system Electronic control of permits

and certificates issued by DTI on imports and exports

Regional initiatives Piloting of a SADC single

administrative document implementation of one-stop

border concept Development of regional

transit system

Customs: KPA’s1. To develop, implement and maintain a customs control and

facilitation strategy

2. To ensure effective border control

3. To effectively manage and administer the customs processes in order to facilitate trade

4. To meet annual Revenue targets

5. To carry-out visible anti-smuggling actions (counterfeit, drugs etc)

Excise: KPA’s1. To build and maintain an effective and dedicated excise unit: Unit fully established

by 30 September 2005

2. To develop, implement and maintain an excise strategy

3. To ensure timely and accurate service

4. To effectively manage and administer the excise processes

5. To implement an audit programme

6. To conduct effective excise control actions

7. To meet annual Revenue targets

8. To carry-out visible compliance actions

LAW ADMINISTRATION

Achievements: Law Admin

Legislation: Exchange Control Amnesty

and Amendment of Taxation Laws Act, 2003.

Revenue Laws Amendment Act , 2003.

First draft of Tax Administration Bill for internal comment.

First draft of Customs policy document - lead to redraft of customs law

International Treaties 6 new DTA’s up to translation

stage with Brazil, Namibia, Spain, Sri Lanka, Swaziland and Zimbabwe.

Renegotiation with Malaysia, Mozambique, Qatar and Tanzania.

Second round with Cuba completed but text not agreed.

4 Customs Treaties ( Iran, Malawi, Turkey and Zimbabwe)

2 VAT treaties - Namibia and Botswana

Law Administration: KPA’s1. To conduct research and advise on tax and customs policy

2. To draft clear and precise tax and customs legislation

3. To develop and Maintain a Tax & Customs treaty framework

4. To Ensure uniform & correct interpretation of the tax laws

5. To develop and maintain knowledge database

6. Provide taxpayers & business with a fair & efficient dispute resolution process

7. To undertake analysis and research to counteract tax avoidance