The net tax revenue of the SA Revenue Service (Sars) for the 2021/22 financial year is R1.563-trillion.

“This represents an increase of 25% or R314bn compared to the prior year. Interestingly, this is a 15.3% growth from the pre-Covid year 2019/20,” said Sars commissioner Edward Kieswetter in Pretoria on Friday.

Kieswetter said in April last year, he had announced tax revenue of R1.250-trillion for 2020/21.

“Gross tax revenue totalled R1.885-trillion, while we have refunded R321.1bn to taxpayers, resulting in the net revenue outcome of R1.563-trillion.”

Kieswetter said the mandate of Sars is to collect all revenues that are due, ensure optimal compliance and facilitate legitimate trade.

“The efficacy of Sars administrative efforts results in the additional tax revenues being collected and prevents revenue leakages from impermissible transactions.”

Sars‘ compliance revenue efforts for the 2021/22 financial year yielded a revenue contribution of R209.7bn.

“This includes R137.5bn of additional revenue, and preventing impermissible refunds and leakages worth R72.2bn from leaving the national revenue fund.”

He said the compliance dividend of R209.7bn was  from a number of administrative actions that had contributed to the tax revenue collections.

These included general compliance in ensuring that non-filing, late filing and underpayment by taxpayers were dealt with.

Kieswetter said early successes included the expansion of the tax base by having 1.8 million newly registered taxpayers, leading to R7bn in additional tax payments.

He said outstanding debt collected amounted to R67.2bn (large businesses amounted to R15.4bn with other taxpayers contributing R51.8bn).

Kieswetter said there was an  increasing trend of taxpayers taking administrative points and a general increase in litigation across all areas.

“On tax appeals, involving the determination of tax liability, the success rate is 87% resulting in judgments in Sars favour amounting to R465m and decisions in favour of taxpayers of R5m.”

He said Sars has achieved a number of notable prosecution successes resulting in lengthy jail sentences.

He said 116 convictions were attained. Thirteen cases resulted in custodial sentences totalling 73 years. These were in connection with convictions relating to income tax, VAT, customs and excise fraud.

Source: TimesLIVE