All data is delayed
See More

Sars to tackle construction tax fraud

May 09 2012 08:12

Parliament - After tackling VAT evasion with considerable success, the SA Revenue Service will take on rampant tax fraud in the construction sector, Commissioner Oupa Magashula said on Tuesday.

Magashula told Parliament's standing committee on finance that construction was the least tax compliant of all sectors of the formal economy.

This was particularly troubling, he said, because contractors who secured government tenders received large sums of public money for projects.

"Given that this sector receives a significant portion of public infrastructure spending from the fiscus, compliance is even more critical.

"We intend to ensure that those companies benefiting from public sector tenders maintain their compliance for the duration of the contract and don't only need a tax clearance certificate at the beginning of the process".

Magashula announced in October last year a new verification system had prevented some R4bn in VAT fraud. He said this figure had grown to R11bn in recent months.

The new VAT system gave people who filed suspicious refund claims the option to submit more supporting documentation, or required them to revise their declaration.

sars  |  fraud  |  construction industry  |  corruption



Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


With infrastructure spending having been identified as one of the key focus areas of the National Development Plan, tradesmen will continue to play a critical role in growing the South African economy through their skills.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

A 30% a month return on investment is:

Previous results · Suggest a vote