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Robocop's got nothing on the new Receiver
The tables have been turned on South Africa's thousands of tax dodgers, reports TERRY BETTY
The taxman has an armful of new weapons in his arsenal: a team of British experts on loan, a new computer system, the ability to cross-check a taxpayer's details with outside information sources, and extra manpower from the 1 000 new staff members who are being paid an incentive to collect more tax. The taxman is now in a better position than ever to detect the tens of thousands of tax evaders who cost the country an estimated R20-billion each year in lost revenue. The greatest breakthrough has been the upgrading of the national computer system which is now sophisticated enough to tap into all kinds of information from outside sources - and to cross-check this with what a taxpayer has indicated in his annual return. This cross-checking is aimed at catching the registered taxpayers who are paying less than their dues. Our investigations reveal that the taxman will soon tap into the following information sources in his bid to ferret out tax dodgers:
Under the leadership of Piet Liebenberg as chief executive of the newly autonomous SA Revenue Service, tax collections since April last year have already been 50% in excess of budget. And with the extra manpower capabilities, the service anticipates collecting up to R4-billion in owed taxes. Presently, there are 240 359 registered taxpayers who between them owe R6,9-billion in tax, interest and penalties for pre-1995 tax years. More than R2,4-billion is owed by only 7 586 people. However, the defaulters can have their interest and penalties waived if they come forward before the amnesty expires and pay the capital. Few dodgers have, as yet, taken up the olive branch. Only 1 000 people have applied for amnesty, but around 250 to 300 people are making inquiries each day. The taxman's might will be boosted from April 1 when the service will be empowered to offer market-related salaries to attract skilled professionals from the private sector. The new recruits, and existing personnel, will be on a sophisticated incentive scheme to collect more tax, and individual performance will be rewarded. It is expected that these measures will rid the department of its "civil servant" mentality.
Jilted lovers, angry ex-spouses, and disgruntled ex-employees will continue to be an important source of information for the sleuths. A reward of up to 10% of the tax collected is offered to people who help the taxman track down offenders. However, the reward will be paid only if the information is new, could not have been picked up by the taxman in any other way, and is detailed.
The bounty aside, many "tell-tales" split on others just for the satisfaction of getting even. Others are jealous that their neighbour has a luxury car and boasts that only idiots pay tax. Sources at the Receiver's office say they get many leads from TV and newspapers. Reports of thefts and fires where large amounts of cash and jewellery are stolen and stock destroyed are matched against tax returns.
Large variations between declared income and apparent income are also closely examined. For example, provisional taxpayers are obliged to submit an annual statement of assets and liabilities. If your net assets have risen by, say, R100 000 in a year, but you have only declared income of R20 000, then you will have a lot of explaining to do!
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