Testimony heard at the Nugent enquiry reveals that the SA Revenue Service admits to telling only half the truth about its supposed new compliance plan.
A presidential commission of enquiry specifically appointed is searching for answers from the revenue collection agency. The state of corporate governance, revenue shortfalls and allegations of misconduct are being questioned.
A “New operations model” at SARS has effectively sidelined the executive for tax, customs, risk and compliance analysis, Dr Thabelo Malovhele. He was given a new title, “Domain Specialist” which according to him was also given to a host of executives who had previously been sidelined by the agency. According to Malovhele, the new model has resulted in the dismantling and fragmentation of compliance structures within the agency, rendering it ineffective.
According to the Fin24 reporter, Kyle Cowan: “Compliance is a key indicator for SARS not only to help focus its enforcement efforts on specific sectors of the economy, but also to meet its legislative requirements.”
During the enquiry, Malovhele revealed that SARS did not have a new compliance plan to present to parliament but rather, a superficially revised version of the old plan.
Fin24 further reports: When pushed on whether this meant SARS had lied to Parliament, he would only concede that SARS had told “half-truths” – not lied.