2013/ /18 STRATEGIC PLAN & 2013/14 ANNUAL PERFORMANCE PLAN. Presentation to the Standing Committee on Finance 14 May 2013

Transcription

1 2013/ /18 STRATEGIC PLAN & 2013/14 ANNUAL PERFORMANCE PLAN Presentation to the Standing Committee on Finance 14 May 2013

2 Executive Leadership team 2 Oupa Magashula, Commissioner Ivan Pillay, Deputy Commissioner Kosie Louw, Chief Legal and Policy Officer Gene Ravele, Chief Officer for Tax & Customs Enforcement Investigations Barry Hore, Chief Operations Officer Takalani Musekwa, Acting Chief Human Resources Officer Bob Head, Special Advisor to the Commissioner Sunita Manik, Group Executive: Large Business Centre Dipuo Mvelazi, Group Executive for Stakeholder Relations Dan Zulu, Group Executive for Branch Operations Peter Richer, group Executive for Strategy Trix Coetzer, Chief Finance Officer

3 Global Tax Environment (Strat Plan: Page 15) 3 The proliferation of sophisticated tax avoidance and evasion schemes continues to present challenges to countries fiscus worldwide A recent OECD report on tax base erosion highlights schemes used to avoid/evade tax such as use of cross-border structures, transfer pricing arrangements, intragroup transactions and hybrid mismatches The Global Forum s Mutual Administrative Assistance Agreement (MAAA) is expected to be ratified this year to improve information exchange for countries without bilateral agreements

4 Strategic Outcomes (Strat Plan: Page 21) 4

5 Strategic Direction (Strat Plan: Pages 32-35) 5 Modernisation Programme nearing its completion, but continous improvement of SARS processes will remain Right from the start principles through education, continous engagement and registration even before tax liability kicks in Cooperative Compliance approach, engaging with taxpayers and others as partners in the tax compliance process

6 Strategic Direction cont d 6 Increasing access and availability to SARS, reviewing branch footprint and other channels with the objective of improving access to SARS Ensuring all taxpayers are in the net by having sight of all economic activity through increasing collaboration with other government departments Reducing the costs of compliance including by providing support to small businesses through a single registration process, in liaison with relevant government departments

7 Increased Customs Compliance /14 key activities (APP Pages 19-23) 7 Preferred Trader Programme New Customs system Review bonded warehouse process One Stop Border Post Cargo and baggage scanning Illicit cigarettes Clothing and textiles

8 Increased Tax Compliance /14 key activities (APP Pages 23-29) 8 SARS Compliance Programme, focus areas being; 1. Large Businesses and Transfer Pricing 2. High Net-Worth individuals and their trusts 3. Small Businesses and Cost of Compliance 4. Tax practitioners and trade intermediaries 5. Illicit cigarettes 6. Construction industry 7. Clothing and Textiles industry Strengthening risk management in PIT, PAYE, CIT and VAT 1. Incorporate compliance history of taxpayers in assessments and audits 2. Introduce the PAYE risk engine 3. Refine the existing PIT and CIT risk engines 4. Collaborate with credit bureaus to obtain third party data Administrative penalty platform 1. Expand notification channels, including SMS s 2. Implement an automated reconciliation process for penalties

9 Increased Tax Compliance - cont d 9 Building Fiscal Citizenship 1. Register South African citizens and businesses in collaboration with other government departments, e.g. DHA 2. Intensify deployment of mobile registration teams Global collaborations 1. Conclude negotiations on the Mutual Administrative Assistance Agreement (MAAA) 2. Conclude negotiations on information exchange relating to the USA s Foreign Account Tax Compliance Act (FATCA), in liaison with Financial Intelligence Centre and National Treasury. Debt management 1. Introduce credit screening to address low value, high volume debt 2. Intensify risk management work aimed at specific tax types

10 Increased Ease and Fairness of Doing Business with SARS /14 key activities (APP Pages 29-32) CIT Modernisation 1. Simplify CIT return forms 2. Pre-populate data using VAT201 and PAYE reconciliation information Business Registrations 1. Implement a single registration process in collaboration with other government departments and agencies including CIPC VAT Modernisation 1. Develop e@syfile ventor software 2. Develop a direct electronic submission channel 3. Carry out enhancement to the VAT Risk engine Electronic Tax Clearance Certificates 1. Transform the TCC process from manual to electronic 2. Create online self-service ability to obtain Tax Clearance status 3. Enable third party access to taxpayer compliance status online Electronic Channel services 1. Expand the SARS e-filing functionality 2. Expand service channels by introducing new mobile channels. 3. Enhance the SARS website 10

11 Increased Cost Effectiveness, Internal Efficiency and Institutional Respectability /14 key activities (APP Pages 32-34) Whole government view 1. Provide support to DHA for its modernisation 2. Collaborate with CIPC to develop a single registration platform 3. Collaborate with other departments (DHA, SEDA, National Treasury etc.) in various capacities to reduce administrative burden Fighting fraud and corruption 1. Enhance and revise the current vetting process through collaborations with SSA and SAPS. 2. Increase conflict of interest awareness to SARS employees People focus 1. Optimise the SARS Learning Academy 11

12 Measuring SARS Performance (APP: Page 36) 12 SARS continues to align its performance management approach to that of government s planning, performance monitoring and evaluation approach, which places emphasis on delivery SARS has also researched the measurement and reporting approaches of global tax administrations, and has incorporated these in its performance management SARS has departed from the historical outputs approach in favour of the outcomes approach, which now forms the basis of setting performance targets

13 Expenditure Estimates over the MTEF period (APP: Page 17) 13 Expenditure Estimates (Rm) 2013/ / /16 National Treasury Grant 9,534 9,983 10,336 Interest income Other Income Roll-over funding requested Total Funds Available 9,844 10,412 11,001 Funding Allocation Baseline Expenditure (BAU) 9,134 9,851 10,626 Initiatives and Projects Total Allocation (Budget) 9,844 10,412 11,001

14 Projected human resources capacity (APP: Page 17) % 14,880 14,875 14, % -2.03% Permanent employees 14,800 14,800 14,500 Temporary employees / / /16

15 SARS Strategic Plan 2013/ /18 15 THANK YOU QUESTIONS