The South African Revenue Service (SARS) is planning to re-introduce its Large Business Centre, a unit dedicated to large businesses and high-net-worth individuals.
The Nugent Commission of Inquiry has heard that the introduction of a new operating model by suspended SARS commissioner Tom Moyane led to the centre’s closure.
This has caused a significant loss of tax revenue.
The commission also heard that SARS deliberately withheld tax refunds.
There was a spike in delaying tax refunds specifically during the months leading up the end of the tax year, in what could be seen as an attempt to raise tax-collection figures.
Many taxpayers also complained that SARS instructed them to verify their banking details even if they had not changed banks.
The move was explained as a way of eliminating fraud.
Delayed refund payments are but one of the many operational headaches that have marred the once-efficient revenue collector over the past few years
Source: eNCA
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