The South African Revenue Service (Sars) has received a record number of returns for the 2009 tax season, it said on Friday.
Sars Commissioner Oupa Magashula said in a statement that by the season’s deadline on November 20, Sars had received a remarkable new record number of more than four million returns for individuals and trusts.
This exceeded the 2008 filing season by a some 800Â 000 returns or 26%.
”At a time when our economy contracted into recession and within the context of a global economic meltdown, Sars views the breakthrough of the four million mark as a major step towards improved tax compliance in this country,” Magashula said.
He said the public response to Tax Season 2009 — and the phenomenal new record figures set — was a major, positive indicator of the growing levels of tax compliance in South Africa.
”Throughout last week thousands of taxpayers patiently stood in long queues at our branch offices, others sought help from our call centre, while many thousands of others filed an electronic tax return through eFiling.”
Magashula said Sars wished to thank all taxpayers who had submitted their returns on time and ahead of the deadline.
”Equally, I want to recognise the extraordinary efforts by the 15Â 000 officials in our organisation who went to enormous lengths to assist taxpayers — often until late at night and far beyond normal office hours.
”They have helped to create a capable, efficient public institution that can provide the highest levels of professional service to millions of taxpayers,” Magashula added.
About 97% of all individual income tax returns for the 2009 Tax Year were assessed within 24 hours compared with approximately 66% in 2008.
”Average turnaround time improved from 15 days in 2008 to 1,7 days in 2009.”
Magashula said it was clear the announcement in October this year of new, tougher administrative penalties against non-compliant taxpayers had had a significant impact on the levels of compliance which might have been motivated more by fear rather than moral conscience.
”While many taxpayers with outstanding returns made use of the window of opportunity to avoid these penalties by submitting all outstanding returns by November 20, 2009, there remained a disappointingly high number of returns outstanding for 2009 and prior tax years.”
He added that Sars would now begin to implement the new administrative penalties for repeat offender taxpayers with multiple outstanding returns.
These taxpayers faced a minimum penalty of R250 per return outstanding per month until the return is filed.
”Penalty assessment notices will be issued to the first group of such taxpayers [comprising approximately 250Â 000 individuals] over the next few weeks,” he said. — Sapa