Pretoria – A Senior South African Revenue Service (SARS) manager on Tuesday, explained how the organization's revenue management program was destroyed by the restructuring project carried out by suspended Commissioner Tom Moyane.
Former executive Sars for tax and customs compliance risks, Thabelo Malovhele testified at the Commission of Inquiry in Tax Administration and Governance of Sars in Pretoria.
He explained that the decline in compliance caused the decline in revenues.
Malovhele said that when he started with the tax authorities in 2005, there was no question of compliance.
"We felt that the Canadian Revenue Service had done this work, we visited in 2008 and then developed a framework that we learned from the Canadians."
He said by 2011 that they could give Sars a picture of compliance with the tax base. They did well until other African countries approached them to learn how to measure, monitor and report on compliance.
Prosecutor-in-Chief Carol Steinberg read from an affidavit of a former employee that the Sars compliance unit was rated as one of the best in the world.
Malovhele said when Moyane introduced the organizational update of the new model, the compliance research function was missing and he raised this problem.
At that time, Malovhele was also informed that he had been replaced and no longer played a role.
"At the moment there is no compliance program, where it was moved there was no competence to do it." There was a lot of talk about collecting revenue, but nothing about compliance. "It was only a matter of time before I saw revenue collection. fall, "he said.
"I have shown them that compliance is shrinking: you do not collect money without submitting a report. [The number of] those who have submitted [their] the return fell. "
Malovhele said that he was now regarded as a domain specialist and had no job description. He was not allowed to have subordinates.
He said that despite adherence to his responsibilities, he was asked to develop a strategy but had no staff or resources.
He explained that Sars drew up a new compliance program in 2017, a duplicate of the 2012 program with focus areas that were no longer relevant and fail.
President Cyril Ramaphosa has appointed retired judge Robert Nugent in June to inform the committee of allegations of financial misconduct at Sars, including a deficit of R50 billion between 2014 and 2018 under Moyane.
Ramaphosa stopped Moyane after a collapse of confidence in his organization.
The hearings are expected until next Friday.
African news agency (ANA)