Tax man sets sights on richest

JOHANNESBURG – The SA Revenue Service (SARS) is to focus on South Africa’s richest 500 people to ensure those at the top of tax ladder pay their dues, Business Report wrote yesterday.

It quoted SARS Commissioner Pravin Gordhan as saying: “A disturbing number of high-profile business people have not paid tax at all.” He said the campaign would focus on those earning between R5 million and R40 million a year, or had net assets of more than R75 million.SARS had since January this year sent letters to 100 of the country’s 500 top earners, including chief executives, chairmen and directors of top companies.SARS chief operations officer Edward Kieswetter said the response had been mixed.”Some are co-operative, others deny being high-net worth individuals, and some are being driven by ego and phone to ask why they had not received the letter.”Gordhan said the strong share market of the past three years had encouraged directors to realise big profits by taking up share options and selling them.”As this will incur a substantial tax liability, they defer submission of their returns for as long as possible, up to four years in some cases, and enjoy the capital generated.”Nampa-SapaHe said the campaign would focus on those earning between R5 million and R40 million a year, or had net assets of more than R75 million.SARS had since January this year sent letters to 100 of the country’s 500 top earners, including chief executives, chairmen and directors of top companies.SARS chief operations officer Edward Kieswetter said the response had been mixed.”Some are co-operative, others deny being high-net worth individuals, and some are being driven by ego and phone to ask why they had not received the letter.”Gordhan said the strong share market of the past three years had encouraged directors to realise big profits by taking up share options and selling them.”As this will incur a substantial tax liability, they defer submission of their returns for as long as possible, up to four years in some cases, and enjoy the capital generated.”Nampa-Sapa