South african revenue service annual report 2012 2013
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Presentation to the Standing Committee on Finance 18 September 2013. Presentation to the Standing Committee on Finance 18 September 2013. SOUTH AFRICAN REVENUE SERVICE ANNUAL REPORT 2012 - 2013. Introduction - Highlights for the Year. SARS Annual Report for the year ending 31 March 2013.

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SOUTH AFRICAN REVENUE SERVICE ANNUAL REPORT 2012 - 2013

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South african revenue service annual report 2012 2013

Presentation to the Standing Committee on Finance

18 September 2013

Presentation to the Standing Committee on Finance

18 September 2013

SOUTH AFRICAN REVENUE SERVICE

ANNUAL REPORT

2012 - 2013


Introduction highlights for the year

Introduction - Highlights for the Year

  • SARS Annual Report for the year ending 31 March 2013.

  • Progress against the SARS Strategic Plan and Annual Performance Plan tabled on 27 March 2012.


For the year under review

For the year under review

  • Revenue Collected:

    • SARS collected R814bn;

    • R4bn in excess of the revised target of R810bn;

    • Representing 25.3% of GDP.

  • Resources used:

    • SARS total expenditure - 1.07% of the total tax revenue – in line with international trends;

    • The staff complement 14,780 ( may have reached 30,000 without modernisation

  • The tax register

    • 19.5 million in total;

    • Comprising 15.4 million individual taxpayers and other legal entities

  • Returns received

    • Over 4million income tax returns for the year (5.6m in total);

    • over 2million VAT returns;

    • over 3million PAYE returns

    • nearly 21million lines of customs declarations

    • SARS processed all personal income tax returns in an average of less than one day.

  • Dealing with exceptions

    • Nearly 1.5million audits of various types, and

    • 1,129 investigations into possible serious tax and customs offences.

    • Reduced taxpayer debt by R6.4bn (including cash collected and write-offs)


South african revenue service annual report 2012 2013

Areas where we did not meet our goals for 2012/13

Commentary on performance

Achievement against target

Source: SARS Annual report


South african revenue service annual report 2012 2013

SARS collected a record R813.8 billion in 2012/13,

continuing its high-growth trajectory…

Total tax revenue collected

R billion

SARS has achieved double-digit revenue collection growth since 1994

+11.7% p.a.

Source: SARS 2012/13 Annual report pg. 15-19; SARS internal data


South african revenue service annual report 2012 2013

SARS collected a record R813.8 billion in 2012/13,

continuing its high-growth trajectory…

Annual growth in tax collections

Percentage (%)


South african revenue service annual report 2012 2013

SARS collected a record R813.8 billion in 2012/13,

continuing its high-growth trajectory…

Annual growth in tax collections

Percentage (%)


Revenue per tax type in 2012 13 p17

% Revenue per tax type in 2012/13 (p17)

Source: SARS 2012/13 Annual report pg. 17


South african revenue service annual report 2012 2013

Tax to GDP ratio trendline

Tax to GDP ratio

R billion

%

Source: SARS 2012/13; Annual report pg. 18


South african revenue service annual report 2012 2013

…Debt reduced by R6.4 billion….

Overdue Debt

R billion

%

Source: SARS 2012/13; Annual report pg. 34


South african revenue service annual report 2012 2013

Outcome 1 : Increase customs compliance

Performance and organisational highlights

Customs revenue amounted to R151.1 billion* (R0.9 billion above target)

Preferred trader programme 154 traders were audited

Decline in illicit economy through 3 298 illicit cigarette contraband seizures. SARS seized nearly 54 million contraband cigarettes with a street value of R37 million

*Customs Revenue consists of Import VAT, Customs Duties, Miscellaneous customs & excise and Incandescent light bulb levy.

Source: SARS 2011/12; Annual report pg. 20-26


South african revenue service annual report 2012 2013

Outcome 2 : Increase tax compliance

Performance and organisational highlights

  • Tax Revenue (Excl. Customs) amounted to R662.8 billion

  • (R2.8 billion above target)

    • PIT R276.7 billion (10.1 % growth)

    • CIT R160.9 billion (5% growth)

    • VAT R103.6 billion (16.4% growth)

  • Taxpayer register

    • Total SARS register - 19.5 million registered taxpayers and traders (11% increase)

    • Income Tax for Individuals register, 15.4 million (12.5% increase)

  • Filing on time

    • PIT 86.05 % (3.47% improvement)

    • PAYE 71.25% (4.12% improvement)

Source: SARS 2012/13; Annual report pg27-31


South african revenue service annual report 2012 2013

Outcome 2 : Increase tax compliance

Performance and organisational highlights

  • Declaration Compliance

    • Total audit cases completed 1.5 million (42% increase)

    • 246 Criminal prosecutions received a guilty verdict, resulted in fines of R21.3 million and effective prison sentences of 133 years

  • Filing season

    • 5.6 million returns received in filing season – 16.47% higher than 2011/12

    • 99.58% income tax returns assessed within 24 hours

    • 94.5% income tax refunds paid within 72 hours of submission

    • Processing of company returns improved from nearly 3 days to less than 1 day in 2012/13

Source: SARS 2012/13; Annual report pg. 31-33; 38-39


South african revenue service annual report 2012 2013

Outcome 3 : Increase ease and fairness of doing business with SARS

Performance and organisational highlights

Faster e-filing solution and new eFiling mobile solution was introduced

Improve turnaround time at border posts due to the introduction of the re-engineered Customs front-end solution

Better taxpayer service and quicker resolution of queries due to the introduction of the Service Escalation and Support team.

Callers receive live assistance to guide them through their queries after the implementation of the new SARS Help-You-eFile service.

Source: SARS 2012/13; Annual report pg. 45-51


South african revenue service annual report 2012 2013

Outcome 4 : Increase cost effectiveness, internal efficiency and institutional respectability

Cost of revenue collection

%

R billion

Most countries’ ratio ranges around the international benchmark of 1%, with USA at a low of 0.6 % and Germany at a high of 1.5%. Brazil and Russia’s ratio is also around 1%.

Source: SARS 2012/13; Annual report pg. 52-53


South african revenue service annual report 2012 2013

Human Capital numbers and Employment Equity ratios have remained stable

Human Capital and Employment Equity

%

PDI in mgmt

> 59%

Women ratio

= 62%

Women in mgmt

~ 41%

Disability rate

= 2.03%

Source: SARS 2012/13; Annual report pg. 61


South african revenue service annual report 2012 2013

Thank you


Tax revenue performance by tax type for 2012 13

Tax revenue performance by tax type for 2012/13

Source: SARS 2012/13; Annual report pg. 16


Budget revenue performance for 2012 13

Budget revenue performance for 2012/13

Source: SARS 2012/13; Annual report pg. 16


South african revenue service annual report 2012 2013

Global collaboration with other stakeholders

Stakeholder

Description of collaborative efforts

SARS holds the Chairperson’s position and the position of the interim secretariat of ATAF

ATAF

SARS was elected as the Deputy Vice Chair of the WCO Eastern and South African Region

WCO

Mr Kosie Louw was elected as Chair for 2013/14

GFTEI

SARS championed the “Tax Inspectors without Borders” initiative and hosted the 5th plenary meeting.

FTA

SARS continues to build on existing partnerships and explore new opportunities for co-operations. SARS hosted the inaugural BRICS Heads of Customs Administrations meeting.

IBSA

BRICS

Source: SARS Annual report, pg. 63-64


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