Calls for new tax amnesty

Concerns raised about rigidity of current voluntary disclosure programme.

- Amanda Visser

South Africa has a growing tax gap estimated to be north of R300 billion, although no comprehensive study has been done on the gap. This is up from R30 billion at the start of the new democratic dispensation in 1994.

Continued law enforcement combined with another tax and exchange control amnesty have been touted at the annual Tax Indaba as a way to narrow the gap.

Franz Tomasek, head of legislative tax policy at the South African Revenue Service (Sars), says the problem with numerous amnesties is the message it sends to honest taxpayers. It boils down to telling people if you do not pay your tax, you are going to be "let off" at a later date.

Speaking at the Indaba, hosted by the South African Institute of Taxation, Tomasek said it undermines tax morale because honest taxpayers will question why have they been the "sucker" for paying their taxes all along.

Pros and cons of another amnesty