Draft as at 3 October 0710 October 2007

SARS Annual Report Presentation

to Portfolio Committee on Finance

Contents

• Context• Operational Review

– Assessment & Service– Customs– Enforcement– Legal and Policy

• Support Service review– Workforce Profile – Facilities– ICT– Communications & Corporate Relations

• Financials• Conclusion

– Modernisation– Challenges

10 Years of SARS

• 1994: Katz Commission’s first interim Report recommends modernisation of tax administration

• 1 April 1996: Department of Customs and Excise and Inland Revenue merge and SARS established as a separate department

• 1 October 1997: The commencement of the SARS Act (No 34 of 1997) gives administrative autonomy

The Context• Economy

– Economic growth of 5% vs estimate of 4.8%– Growth in employment of 2.9% and wage bill of 9.2% y-o-y– Gross operating surplus 15.5% vs. 10% in 2005, mainly

• Finance • Manufacturing• Mining• Wholesale and retail trade sectors

– Imports grew by 18.4% (10.7% in 2005) and exports grew by 5.5% (vs. 8% in 2005)

– Final household expenditure 7.3% (vs. 6.6% in 2005)

• Compliance Culture– Generally improving– Tab Base Broadening

• Registration• Loopholes

– Effective Corporate Tax Rates

The Context• Significant trade policy changes

– Import of R463bn (R349bn in 2005) due to higher trade in mineral products (68% y-o-y) and machinery (32% y-o-y)

– Export of R394bn (R327bn) due to increased trade in precious and semi-precious stones and metals (33% y-o-y) and base metals (20% y-o-y)

– Implementation of the MoU on restriction of volumes of clothing and textile goods imported from China

– The signing and ratification of the SACU – EFTA trade agreement– The extension of the SADC textile and clothing quotas for Malawi, Mozambique,

Tanzania and Zambia and the textile and clothing industry development program– The development of rules on Industrial Development Zones– Adoption of WCO Authorised Economic Operator (AEO) standards in June 2006

• Significant tax policy changes– Tax amnesty for small businesses– Tax on retirement funds rate reduced from 18 to 9% and subsequently to 0%– General anti-avoidance rule (GAAR) rules– Preparation for review of STC– Preparatory work for the proposed diamond export levy to promote local

beneficiation– Withholding tax for non-resident entertainers and sportspersons came into effect– Legislation introduced to give effect to the guarantees given by SA for hosting the

2010 FIFA World Cup

SARS Challenges previously identified

• Values and culture in SARS• Sustaining and expanding compliance culture• Taxpayer non-compliance : trusts; construction etc• Increasing volumes / limited staff• Service

– Linking front line staff with business systems• Process automation and risk management• Increasing visible audit Coverage• Customs

– Visibility & skills– Increase Capacity : eg Enforcement – International commitments– SACU / SADC : integration

• Skills & management capacity

Annual Report Highlights

Revenue CollectionOperational Highlights

Support Service Highlights

Revenue Collection

Macro Economic Indicators

Factors that drive Revenue Collection

• Higher employment and compensation increased Personal Income Tax

• Higher business profitability increased Corporate Income Tax

• Higher domestic expenditure increased Value-Added Tax

• Higher capital distribution by companies increased Secondary Income Tax

• Higher import levels increased Customs Duty

1 709.1

4.9

14.3

3.9

7.97.05.6

12.0

2006

2006/07Feb 07Estimate

1 727.51 674.6Nominal GDP (R Billion)

5.04.9Real GDP Growth

18.49.4Imports

5.57.1Exports

8.77.35.4

12.7

5.64.94.89.4

Gross Domestic Expenditure•Final Household Expenditure•Government Expenditure•Gross Fixed Capital Formation

20062006Calendar year (%)

2006/07Actual

2006/07Feb 06Estimate

Operational Highlights• Revenue target

– Collected Tax Revenue of R495,5 billion at a cost of 1,04 cents per rand• Better compliance

– Growth in register• Grew the tax register by 8%.

– Small Business Amnesty Implemented– Education and outreach

• Improved service– Overall TAT

• Improved the processing of assessments by 2.4%.• Processed 81% of income tax refunds and 83% of VAT refunds within 21 days.• Processed 96% of income tax and PAYE payments within five working days.

• Compliance cost– Call Centre– E-filing – (must show the actual numbers)– Practitioners

• Back office efficiency– Workload– Improved turnaround times for income tax returns by 10%– Quality / errors

• Risk

Cost of Collections 1998/99 – 2006/07

• Revenue collections grew by an average 13.1% in the past 9 years whilst operating costs increased by 15.1%.

R millionFinancial

YearRevenue Collected

Operating Cost

Cost as a % of Revenue

1998/99 184,844 1,663.2 0.90%1999/00 201,386 1,906.3 0.95%2000/01 220,334 1,922.5 0.87%2001/02 252,298 2,332.6 0.92%2002/03 282,210 2,878.5 1.02%2003/04 302,508 3,562.8 1.18%2004/05 354,980 4,311.7 1.21%2005/06 417,334 5,135.0 1.23%2006/07 495,515 5,134.0 1.04%

Cost of Collections

-

100,000

200,000

300,000

400,000

500,000

600,000

1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07

Financial yearsR

mill

ions

0.80%

0.90%

1.00%

1.10%

1.20%

1.30%

RevenueCollected

Cost as a% ofRevenue

Handling more with less

2004/2005 2005/2006 2006/2007

Percentage Growth in Register 9.30% 9.53% 8%

Workload - Returns Processed 10,912,200 12,119,656 15,186,894

Revised Assessments 6% 5% 5%

Our transactional volume has grown by an average of 10% over the past 3 years. This placed a significant burden on the operational resources.

During this period• our tax assessment workload increased by 39%• whilst our processing capacity reduced by 2%

SARS increased the output per employee by 41%, whilst maintaining quality and risk standards

Filing

Increase / Decrease in returns received

Tax Type Previous year Current Year Increase / Decrease

%Increase / Decrease

Income Tax–2005/2006–2006/2007

4,516,4724,920,167

4,920,1674,927,770

403,6957,603

8.94%0.15%

Value Added Tax–2005/2006–2006/2007

3,148,2933,501,943

3,501,9433,704,194

353,650202,251

11%5.5%

Pay as You Earn–2005/2006–2006/2007

3,267,2853,747,478

3,747,4783,995,580

480,193256,355

14.7%6.4%

Taxpayer Education

2,755TOTAL

941Small business amnesty

279Provisional tax

266PAYE

359VAT

910Income tax

Number of education interventionsTax type & product

In order to empower citizens with knowledge about tax, more than 2700 education interventions took place during the year under review.

115,777TOTAL

4,490Trade and customs

63,281Business owners

48,006Salaried individuals

Number of taxpayers educatedTaxpayer type

Call Centre

Channel 2004/05 2005/06 2006/07 % Change (FY06 to FY07)

E-Mail 43,101 104,376 234,071 124 % increase

Fax 145,013 510,859 618,140 21 % increase

Phone 914,391 3,529,669 4,270,900 21 % increase

Our 3 Call centres have proven effective as a preferred channel. As a convenience channel, it reduces the cost and burden of compliance. Volumes, across all channels, continued to rise reflecting a growing awareness of this service, which increased by more than 20% since last year.

Tax Practitioners

• Established the Practitioners Unit.– Our practitioners’ register increased from 13,992 to 17,490 – an

increase of 25%.

• Conducted a service survey to determine the service gap– Information used to enhance the offering

• Developed a dedicated service channel• Regular interaction with Tax Practitioners via the

Unit and stakeholder meetings.

Small Business Amnesty Walkabouts

Small Business Tax Amnesty

Total number of applications received end March ’07Total number of applications received end Aug ‘07

22,000353,388

Adjudicated 138,397 39%

Applications with outstanding documents 214,991 61%

The SSMO is an independent channel for customers to launch complaints. It serves as a final complaints office and received 6,882 complaints from taxpayers for 2006/2007 as compared to the 5,756complaints received in the previous year.

Analysis

• The increase of 20% in the number of complaints is due to an increased awareness

of SSMO and its service offering

• 85.4% complaints dealt within the Service Level Agreement of 14 days in

2006/2007 compared to 82 % in 2005/2006

• Complaints are mostly attributed to issues with the service call made to either a call

center operators or a Branch office agent.

SARS Service Monitoring Office (SSMO)

13 711 (8 610)

Active taxpayers

377 (369)

Personnel Headcount

LBC UNIVERSE

295 (35)HNWI Files

R3,904 billion (R4,247 billion)

Refunds paid

R1,343 billion (R4,1 billion)

Debt reductions

R9,076 billion (R7,9 billion)

Audit results

3,945 (4,649)

Compliance Audits

R137,239 million (R131 million)

Expenditure

12 430 (17 111)

CIT files

6 158 (4 643)

VAT files

4 210 (2 369)

PAYE files

R150,3 billion (R89,7 billion)

Revenue

36 463 (all taxes) (26 391)

Returns processed

R16,3 billion (R12,5 billion)

Para 19(3)

LBC Volumetrics 2006/07

In some cases, 19(3) has been applied more than once in consecutive years in some of the cases illustrated below.

Paragraph 19(3)

TOP 400 month on month contributions

Paragraph 19(3) cont

Operational Highlights: Customs

• Noticeably improved trade facilitation: – Turnaround Times for Import EDI declarations exceeded target

and improved by 3%.– Turnaround Times for Import manual declarations exceeded

target and improved by 6%.– Turnaround Times for Export EDI declarations exceeded target

and improved by 1%. – Turnaround Times for Manual declarations exceeded target and

improved by 4%.• Improved profiling and targeting of consignments:

– Import Success Rates at international POE’s increased by 11%.– Import Success Rates at SACU borders increased by 22%.– Export Success Rates at international POE’s increased by 17%. – Export Success Rates at SACU borders increased by 9%.

Operational Highlights: Customs (2)• Substantial increase in the seizure of illicit goods:

– 83% increase in counterfeit goods seizures predominately clothing and DVD’s.

– 85.9% increase in cigarette seizures predominately contraband cigarettes to a value R177 million.

– 200% increase in narcotic seizures predominately heroin and cannabis.– 198 CITES seizures to a value of R4 million (snake skins, abalone, coral

and sea shells).– 430 seizures of illegal movate creams.

• Significant progress on the development of the Customs Border Control Unit:– Customs Detector Dog Unit established.– Recruitment and training preparations made

• Introduction of a single administration document at all ports ofentry

• Pilot project commenced at Lebombo for a one-stop border post with Ressano Garcia in Mozambique

2,209 Customs Officers

48 Customs Offices

3,095

Bonded Warehouses

1,475

Excise Manufacturers

7,006

Rebate Manufacturers

16 MillionTravellers &

Vehicles

2.8 Million

Export Transactions

2,2 Million

Import Transactions

335,117 Transhipped

Import Containers

185,788 Exporters

197,205Importers

1,79 Million

Export Containers

1,75 Million

Import Containers

364,284 Transhipped

Export Containers

Imports:• 2% increase in declarations received via EDI • Despite increases in declarations submitted,

EDI processing times exceeded target and have improved by 3% and manual processing times exceeded target and have improved by 6%.

• Exceeded the coverage target by 19%. • Stop Rates at international POE’s increased

by 6%.• Success Rates at international POE’s

increased by 11%.• Stop Rates at SACU borders decreased by

9% but success rates increased by 22%.

Exports: • 10% increase in declarations received via

EDI • Despite increases in declarations submitted,

EDI processing times exceeded target and have improved by 1% and manual processing times exceeded target and have improved by 4%.

• Success Rates at international POE’s increased by 17%.

• Stop Rates at SACU borders decreased by 4% but success rates increased by 9%.

180,735

90,376

2005/06

147,591Exports

97,714Imports

2006/07Interventions

Cargo Examination Rates

Trade Administration

Protecting Border Posts (1)

125

-

5

29

4

87

-

2004/05No. Seizures

381127Total

22112Other Drugs

22Ecstasy

1586Cocaine

42Mandrax

13625Cannabis

35Heroin

2006/07No. Seizures

2005/06No. Seizures

Narcotics:

•200% increase in narcotic seizures.

533

No. Seizure

2004/05

140m

Qty

R63m

Value

1,056

No. Seizure

2005/06

228,1m

Qty

R93,5m

Value

R250m268,9m1, 963

ValueQtyNo. Seizure

2006/07

Protecting Border Posts (2)Cigarette Seizures

•85.9% increase in cigarette seizures.•1,848 contraband cigarette seizures to a value of R177 Million

1392342nd Hand Clothing

13971Diamonds & Precious Metals

5 183152Motor vehicles

92Explosives

4198CITES

5 64584Cash

Type of Seizure

Value ‘000No of Seizures

Other Seizures

Protecting Border Posts (3)

R354 Million1,554Total

R231,6 Million767Other

R38,2 Million147Footwear

R65,3 Million475Clothing

R18,4 Million165CD & DVD

ValueNo of SeizuresType of Seizure2006/07

Counterfeit Seizures

331

No. Seizures

2004/05

R232m

Value

846

No. Seizures

2005/06

R450,9m

Value

R354m1,554

ValueNo. Seizures

2006/07Counterfeit Seizures

•83% increase in counterfeit goods seizures.

Border Control Operational Coordinating Committee (BCOCC)

• Now functioning properly at all levels– Currently appointing National, Provincial & Port

Coordinators– Progress made on the 6 initiatives

• National Border Control & Security Strategy• Infrastructure Development• National Border Coordination Centre• One-Stop Border Post• Initiatives aimed at addressing illegal movement of people

and goods• Entry and Exit Strategy for securing the border line

National Border Co-ordination Centre: NBCC

• Facility identified, Lease Agreement signed• NBCC Initiatives

– Advanced Passenger Profiling/Processing System (APP)

– Info analysis and coordination– Systems Interface

One-Stop Border Post: SA - MOZ

• Agreement signed on 18 Sept 2007• Next Steps

– Tender for concept design to be awarded by end October 2007

– Appointment of Project Manager– Development of the Legal Enabling Framework &

Standard Operating Procedures– IT Systems Interface

Infrastructure Projects

• Lebombo 1 Stop Border Post: R600m• Skilpadshek Border Post: R556m• Vioolsdrift Border Post: R212m• Golela Border Post: R150m• Budget for 2007/2008: R320m

– 100% committed– R200m on Repair and Maintenance Programme– R120m on Infrastructure Development Projects

Enforcement Highlights • Audits

– Conducted 69 270 audits of which 13 114 cases were inspections on non-compliant small business

– Total revenue assessed R6,6 billion; collected R2,1 billion• Criminal investigations

– Hit rate of 87% (447) on cases prosecuted– Increase of 62% (1 909) in criminal cases handed over for prosecution

• Debt Book– Reduced the debt book by 3.75%.(R2.2 billion) – Collected debt of R17,7 billion - 4% above target – Past 2 years constant reduction of debt book

• Outstanding returns:– Reduced outstanding returns first time in history with 6%

• Campaigns – confiscated:– Tik valued at R270 million– 20,5 tons of abalone– Machinery used in counterfeiting

Audit• Coverage of all sectors and segments – risk and random selection

– 38% of audits (26,322) conducted were focussed on individuals– 62% of audits (42,948) were focussed on companies– Sectors with higher coverage:

• Agencies and other services• Agriculture, Forestry and fishing• Construction• Computers/Electronics• Financial and Real Estate• Government Departments• Manufacturing Industries• Transport

• The key part of the strategy is to conduct in-depth investigations 11,501 (17%) –which arises from specific risk

• Introduction of field inspections• 15 415 field audits conducted• 53 855 desk audits conducted• Hit Rate

– BIU Supply Enforcement division with 69 270 cases• Hit rate of 68%

– BIU Supply Customs division with 668 cases• Hit rate of 78%

Hit Rate per Tax Type

Hit Rate per Tax Type

84%

71%

63% 64%

54%

71%67% 68%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

CIT

VAT

PAYE ST

C

CG

T

SDL/

SUN

DR

Y

PIT

TOTA

L

Audit transgressions

• Income understated – manipulation of turnover/stock

• Fictitious expenses – non-business expenses • Expenses overstated – falsification of invoices• Interpretation issues - legislation

CIT

• Inputs overstated – manipulation of invoices• Under-disclosed outputs - turnover• Inflated zero-rated sales – fictitious exports

VAT

• Structured salary packages• Employer deducts PAYE but fails to pay to

SARS• Employee benefits not taxed

PAYE

• Income understated – rental income, investments

• Fictitious expenses – manipulation of expenses by commission earners

• Expenses overstated – medical and travel

PITMain transgressionsTax type

Criminal Investigations

17447382Criminal cases successfully prosecuted

6219091181Criminal cases completed

%variance

2006/072005/06Description

• Number of investigations increased by 62% from 1,181to 1,909.

• The number of prosecutions increased by 17%.• 87% success rate on prosecutions.

Criminal Investigations

Most frequent offences:

• VAT fraud - Overstating of input and under declaration of output of VAT – 213 cases (43%)

• Under declaration of income – 176 cases (36%)• Customs under/wrong declaration- 55 cases

(11%)• PAYE not paid to SARS – 31 cases (6%)

Percentage due debt collectable

11,143,408,906.80Total Collectable Debt

1,058,088,306.50 254,232,353,226Clean debt WIP

06,209,625Awaiting write-off

465,450,539.45 59,309,010,789Appeals at head office

54,845,205.50 51,096,904,110Appeals at the offices

261,569,457.05 55,231,389,141Objections

15,637,304,040Debt under dispute

8,302,178,158.20 3027,673,927,19424+ months

404,282,567.10 104,042,825,671Suspense

541,438,624.20 105,414,386,242Estate

55,556,048.80 10555,560,488Untraceable

37,686,699,595Doubtful debt

%57,562,566,486Due debt

Percentage Collectable based on trendsDebt classification (Income Tax, VAT and PAYE)

Debt Management

Achievements• R17,7 billion debt collected - 4% above target • Debt to Revenue ratio reduced from 14.15% in

2005/06 to 12,88% in 2006/07.• The revenue debt book reduced by R2,2 bn (3.75%)

in 2006/07 and by R2,7bn in 2005/06.• New regulations passed in April 2007

– Implement from this year

Enforcement Campaigns

• Confiscated methamphetamine (‘tik’) with a street value of R270 million;

• Confiscated 20,5 tons of abalone;• Confiscated machinery used in counterfeiting;• A joint SAPS/SARS investigation culminated in

search and seizures on clothing and footwear of more than 20 businesses in Newcastle.

Legal and Policy highlights

• Legislative Highlights– A new and improved General Anti-Avoidance Rule was introduced– An advance tax rulings system was implemented– Legislation was introduced to give effect to the guarantees given by– South Africa for hosting the 2010 FIFA World Cup– Legislation on withholding tax for non-resident entertainers and

sportspersons came into effect– Small Business Tax Amnesty and Amendment of Taxation Laws Act– (2006)– Revenue Laws Amendment Act, 2006 (7 February 2007)

• Tax Treaties– Double taxation agreements with Australia, Lesotho, Seychelles and

the United Kingdom were finalised.

Legal and Policy: Key Legal services

• Interpretation and Rulings– Advance Tax Rulings (ATR)

• Implemented October 2006• To promote clarity, consistency and certainty

– Appeals dealt with by the ADR• 352 cases were dealt with as follows;

– 170 cases settled – 73 cases referred to Tax Court / Tax Board– 90 cases conceded by SARS– 19 cases withdrawn by taxpayers

• Litigation– Tax Court – 176 tax cases referred– High Court - 47 Customs cases referred

Support Service Highlights

Workforce Facilities

ITCommunications & Corporate Relations

Top People Indicators• Total staff establishment:

– 14 709 for 2006/07 compared to 14 800 in 2005/06– 14 013 permanent establishment in 2006/07 compared to 13 979 in 2005/06– 696 temporary workers in 2006/07 compared to 822 in 2005/06 (all staff that are employed

via a third party – generally temps and seasonal workers)• Personnel cost as % of Expenditure

– 2006/07 = 60.8% compared to 59.2% in 2005/06• Appointments

– 942 positions were filled in 2006/07 compared to 1671 positions in 2005/06• Terminations:

– 935 terminations in 2006/07 compared to 868 terminations in 2005/06 (terminations include all voluntary and involuntary exits from SARS)

• Nett staff turnover– 2006/07 = 0.05%– 2005/06 = 5.74%

• Implies:– Permanent headcount remained almost constant in the last 2 years while the revenue and

customs activities have increased quite significantly• Revenue collected up by 16%• Permanent headcount up by only 34 permanent employees whilst temporary employees decreased by

126 from 2005/06 to 2006/07.– Revenue collected per employee has increased by more than 15%– Productivity has gone up meaning people are working smarter and harder

People highlights• SARS Sick absenteeism rate is 3% for 2006/07 and compares very favorable with the average sick absenteeism

rate of 6.5% for the Services Industry in South Africa

• Equity– Black representation in SARS staff has increased from 61% (2005/06) to 63% (2006/07)– Female representation remained unchanged at 65%– 89% of all recruitments and promotions in 2006/07 (942) were black of which 56% were women.– Profile of SARS is changing positively to reflect the demographics of our country.– Employment equity has shown steady increase in terms of representation on the higher grade levels

(Management)

• Performance Management and Development System– A new integrated Performance Management and Development System (PMDS) was implemented and rolled

out to manager, team leader and specialist levels (grade 6 to 7)– The system includes individual scorecards, quarterly performance reviews and personal development plans– The plan is to roll out this methodology to the rest of the staff (grades 1 to 5) during 2007/08 performance

management cycle.– The new system focuses on individual performance contracts

Facilities Highlights

Portfolio Overview: No of SitesTotal 294Commercial Properties 139Residential Properties 155

SARS Property Portfolio

Technology Highlights

• Technology infrastructure refresh programme gaining traction– Constantly improving existing technology and service

offerings– Intrusion detection tools– High focus on third party interfaces (eg CIPRO, etc…)– SAP solution upgraded to process payments from all

channels– Ongoing review of technology contracts with large

suppliers to– ensure value for money proposition is maintained

Corporate Relations Highlights

• Engaging with key stakeholders– Entrenched and strengthened quarterly meetings between SARS

and practitioners, employers representative organisations and life office’s association

• Engaged CEO’s of major SA firms on tax responsibility and co-operation

• Corporate Social Responsibility– Used office furniture donated to 5 schools in KZN – Seized second-hand clothing donated to 13 NGOs in Eastern

Cape– R45 000 raised at the NMF during an auction of gifts received by

the Ethics Office was donated to two NGOs in Northern Cape

Marketing Highlights

• Educating and informing taxpayers and traders– More than 2 million tax and Customs publications designed, printed and

distributed via offices and media– Highly visible outreach activities including Odometer Campaign in which

300 000 travel logbooks distributed at traffic intersections, Anti-Piracy Campaign in which 10 000 pirate DVDs distributed with anti-piracy message

– Annual Report designed and written internally

• Motivating compliance– Enhanced focus on higher purpose message during the year: “You make

South Africa great!”– Highly-rated Filing Season advertising campaign (Advert of the Week on

radio and 7/10 rating in market research) – Survey Results

– Overall Positive attitude to SARS filing season and marketing campaign– Most South Africans rate SARS 6.7 out of 10 for Service

Marketing material

SARS Financials

Financial Highlights

• Unqualified AG audit opinions on SARS Own Accounts and SARS Administered Revenue (without emphasis of matter)

• Cost as a % of collections is 1.04% (1.02% on the normalised basis (i.e. excluding IFRS/ IAS impact)

• On the normalised basis, expenditure increases by 4% with the only material increase being the 7.6% in people expenses

.Budget / Expenditure & Allocation

Enhancing the Africa Agenda through Co-operation

• Support foreign policy objective of strengthening Africa’s institutions• Responsive to needs: undertake diagnostics, targeted intervention• Expand and improve assistance offerings:

– Diagnostics– Policy, legal and operational assistance – Study visits, benchmarking– Training– Secondments (in and outbound)

• Signed MoU on Capacity Building with Lesotho Revenue Authority• Roll-out of Customs systems: Lesotho and Swaziland• Study visits / benchmarking: 17• Interventions at Regional Training Centre: 2• SARS /OECD joint training for African administrations: 3• Tax treaty workshops: 2 • Assisted WCO to undertake Customs diagnostics: Malawi and Namibia• Approval to establish dedicated SARS Capacity Building Office

SARS Next Steps

Conclusion

ModernisationChallenges

Strategy & Modernisation

• A fundamental review of the SARS strategy• Development of a Modernisation Agenda

• Starting to deliver on the Modernisation Agenda– Tax Assessment Programme

• Imaging and bulk scanning facilities implemented in Alberton • Introduced widely available Adobe technology to support

“intelligent” Tax Returns• Development of risk engines to enable smarter profiling of risk

areas – Service Programme

• Transforming call centres to become contact centres which provide “first call resolution”

• Awarding three significant tenders– Tax and Customs Modernisation– Customs Container and Cargo Scanners– Network – four tenders awarded, whilst the remaining three have

progressed to BAFO

SARS Challenges

• Extending the tax base and SARS footprint• Putting tax on the corporate governance agenda• Filing of tax returns – new approach

– Errors (made by taxpayers and practitioners)– 3rd party data (employers)

• Balance between risk and service• Modernisation agenda

– Resources and capability• Extending cooperation with other government entities• Extending capacity building in Africa

Thank You