Fin24

Sars to tackle construction tax fraud

2012-05-09 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.

 

Comments
  • derekneilmaclachlan - 2012-05-09 10:41

    NOW SARS.....START INVESTIGATING THE HUGE CHINESE POPULATION FLOODING INTO SOUTH AFRICA AND SETTING UP BUSINESSS'S IN EVERY PART OF THE COUNTRY....I doubt they pay anything towards the fiscus..

      Alan - 2012-05-09 11:21

      Too true. In the South of Jhb are massive 'Chinese marts' where the business is all cash, and there are thousands of individual shops. Guaranteed that billions of rands-worth of trade are done here - and that SARS never sees one cent of it.

      Gerald - 2012-05-09 15:44

      Ja man. But those lazy fatties would have to outsmart serious Chinese IQ!

  • Colin Murray - 2013-04-03 09:12

    Have you not thought that the Chinese masses have been given a tax holiday for 5 years to enable them to establish their businesses. By that time they have made enough to leave the country and start anew in places like Zimbabwe or Botswana..

  • pages:
  • 1