/ 6 June 2007

Huge response to tax amnesty

About 220 000 businesses have already registered for the government’s small-business tax amnesty, more than twice as many as expected, Finance Minister Trevor Manuel said on Wednesday.

The amnesty, for businesses with a turnover of less than R10-million, was launched in August last year and was to have closed on May 31.

However, in the face of an avalanche of last-minute calls from businesses, including taxi operators, and long queues, offices of the South African Revenue Service (Sars) remained open until lunchtime last Saturday.

”We had an idea somewhere that about 100 000 businesses would register,” Manuel told a World Editors’ Forum lunch in Cape Town.

”We had 220 000 businesses that registered for the amnesty … It speaks volumes for the fact that nobody wants to be informal, unregistered and off-the-record.

”Even small businesses want to be part of what we’re doing. I think it’s important that we recognise those issues.”

Sars announced on Monday that Manuel would ask Parliament for a further ”short” extension to the amnesty.

This was at the request of five business and professional organisations, including the South African Chamber of Business and the South African National Taxi Council. — Sapa