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Cape Town - Finance Minister Pravin Gordhan warned on Thursday against financial advisers “undermining” South Africa’s tax system in pursuit of profit.
Opening debate on the tax administration bill in the National Assembly, he said one thing the draft legislation did not do was transform what he called the adviser community.
“The aggressive undermining of the fiscus that some pursue - obviously at the receipt of a fee, even at a time of extreme fiscal stress - is extremely dangerous.”
This could be seen in Greece and Italy and other countries.
Gordhan said advisers and their clients should “pause for reflection, as we must also, on the damage they can do to the tax system, and South Africa more broadly, as the result of their practices".
Responding to members at the end of the debate, he also suggested a clampdown on tax havens.
“The world needs to do much more to bring tax havens to book, so that the rich and the super rich and the powerful corporates don’t get better opportunities to evade tax.”
Opening debate on the tax administration bill in the National Assembly, he said one thing the draft legislation did not do was transform what he called the adviser community.
“The aggressive undermining of the fiscus that some pursue - obviously at the receipt of a fee, even at a time of extreme fiscal stress - is extremely dangerous.”
This could be seen in Greece and Italy and other countries.
Gordhan said advisers and their clients should “pause for reflection, as we must also, on the damage they can do to the tax system, and South Africa more broadly, as the result of their practices".
Responding to members at the end of the debate, he also suggested a clampdown on tax havens.
“The world needs to do much more to bring tax havens to book, so that the rich and the super rich and the powerful corporates don’t get better opportunities to evade tax.”
