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Delay in refunds could’ve lead to inflated tax revenue, SARS inquiry hears

SARS inquiry

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.

SARS inquiry

The commission also heard that SARS deliberately withheld tax refunds.

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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

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Source: eNCA

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