ASSESSMENT

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ASSESSMENT
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Assessment

• Improved and streamlined processes
• Improved turnaround times
• No backlogs in the assessment of returns
• Reducing outstanding returns
• Quicker refunds
• Improve payment processes including the ability
  to pay through banks
• Improved assessing skills

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Assessment Achievements

• Returns Processed
• IT 4.1 million
• VAT 2.98 million
• PAYE 2.2 million
• Increase in register
• IT 9
• VAT 6
• PAYE 8.1
• PAYE Reconciliations
• 96,6 finalised of Reconciliations received
• Improved debt equalisation process Value of
  refunds equalised to debt R1,65 billion.
• Reduction of R10,3 million or 25 in VAT refunds
  paid.
• Successful Filing Campaign 11.76 increase in
  returns received
• Call center upgrade and implementation
• Increase in E-Filing

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Assessment KPAs

• 1. To effectively manage and administer the
  registration process
• 2. To effectively manage and administer the
  filing process
• 3. To ensure quality and timeous assessing /
  processing
• 4. To ensure timely accurate payment / refunds
  process
• 5. To ensure efficient document management
• 6. To optimise Revenue collection

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ENFORCEMENT
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Enforcement

• The tax and customs enforcement program -
  increased revenue from audits and successful
  criminal prosecutions.
• Has enhanced governments anti-crime strategies.
• SARS has increased the number of audits
  performed significantly increased the skills
• More effectively combating improper tax
  planning, Customs transgressions and outright
  fraud.

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Enforcement Overview Results
2003 / 2004 2003 / 2004 2003 / 2004 2003 / 2004
Number of staff Number of cases attended to Revenue implications
Audit 1 270 58 054 R 20,4 bil assessments raised
Criminal Investigations 144 1 430 Admin cases completed 120 Serious cases Total 6 258 (1 558 convictions) R 3,6 bil assessments raised
Collections Debt Outstanding returns 812 483 2 876 486 (outstanding returns collected) R 22,6 bil collected
TOTAL 2 709
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Prosecution Results
DESCRIPTION NATIONAL TOTALS FOR 2003/2004
Actual fines R 4,543,460.00
Imprisonment (years) 84
Suspended fines R 75,000.00
Suspended imprisonment (years) 107
Repayment to SARS R 39,593,471.00
Caution (number) 1
Correctional service (years) 3
Other Property forfeited to SARS - value R 3 million
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Enforcement KPAs

• 1. To develop a strategy to enforce the law
  amongst those that are actively non-compliant
• 2. To develop a strategy for control and
  deterrence
• 3. To develop a comprehensive Risk analysis
• 4. To develop and publish a Compliance Plan for
  2005/06
• 5. To ensure optimal Revenue collection
• 6. To implement an audit programme
• 7. To carry-out visible compliance actions
• 8. To conduct Criminal investigation
• 9. To effectively manage Debt

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CUSTOMS
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Customs

• Customs role is
• firstly the protection of the South African
  economy and security of its people,
• facilitation of trade.
• Customs staff has grown from about 800 to
  over 2 400 over past 3 years
• Now better able to fulfill its mandate

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Customs Achievements

• Container Security Initiative
• Bilateral agreement with USA customs in the
  fight against international terrorism and
  economic crimes
• ICRAS
• Integrated Customs Risk Analysis Solution
  designed to improve risk profiling
• E-learning
• Use of interactive multi-media, on-line learning
  facility, which is an automated training tool

• Electronic Permit system
• Electronic control of permits and certificates
  issued by DTI on imports and exports
• Regional initiatives
• Piloting of a SADC single administrative
  document
• implementation of one-stop border concept
• Development of regional transit system

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Customs KPAs

1. To develop, implement and maintain a customs
   control and facilitation strategy
2. To ensure effective border control
3. To effectively manage and administer the customs
   processes in order to facilitate trade
4. To meet annual Revenue targets
5. To carry-out visible anti-smuggling actions
   (counterfeit, drugs etc)

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Excise KPAs

• 1. To build and maintain an effective and
  dedicated excise unit Unit fully established by
  30 September 2005
• 2. To develop, implement and maintain an excise
  strategy
• 3. To ensure timely and accurate service
• 4. To effectively manage and administer the
  excise processes
• 5. To implement an audit programme
• 6. To conduct effective excise control actions
• 7. To meet annual Revenue targets
• 8. To carry-out visible compliance actions

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LAW ADMINISTRATION
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Achievements Law Admin

• Legislation
• Exchange Control Amnesty and Amendment of
  Taxation Laws Act, 2003.
• Revenue Laws Amendment Act , 2003.
• First draft of Tax Administration Bill for
  internal comment.
• First draft of Customs policy document - lead to
  redraft of customs law

• International Treaties
• 6 new DTAs up to translation stage with Brazil,
  Namibia, Spain, Sri Lanka, Swaziland and
  Zimbabwe.
• Renegotiation with Malaysia, Mozambique, Qatar
  and Tanzania.
• Second round with Cuba completed but text not
  agreed.
• 4 Customs Treaties ( Iran, Malawi, Turkey and
  Zimbabwe)
• 2 VAT treaties - Namibia and Botswana

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Law Administration KPAs

• 1. To conduct research and advise on tax and
  customs policy
• 2. To draft clear and precise tax and customs
  legislation
• 3. To develop and Maintain a Tax Customs treaty
  framework
• 4. To Ensure uniform correct interpretation of
  the tax laws
• 5. To develop and maintain knowledge database
• 6. Provide taxpayers business with a fair
  efficient dispute resolution process
• 7. To undertake analysis and research to
  counteract tax avoidance