ANNUAL REPORT

Transcription

1 SOUTH AFRICAN REVENUE SERVICE ANNUAL REPORT Presentation Presentation to the to Standing the Standing Committee Committee on Finance on Finance 18 September September 2013

2 Areas where we did not meet our goals for 2012/13 Achievement against target Commentary on performance VAT 57.6% VAT returns filed on time (3.78% improvement) This remains a concern. The modernisation of VAT is anticipated to significantly contribute to higher levels of compliance in on time filing. VAT refunds processed within an average of working days (against a target of 21 working days) The days achievement against this measure has significantly improved from last year's baseline. 59% of all refunds were paid within 48 hours in this financial year, compared to 46% in the previous financial year. Source: SARS Annual report 2

3 SARS collected a record R813.8 billion in 2012/13, continuing its high-growth trajectory Total tax revenue collected R billion +11.7% p.a. SARS has achieved double-digit revenue collection growth since 1994 Source: SARS 2012/13 Annual report pg ; SARS internal data 3

4 SARS collected a record R813.8 billion in 2012/13, continuing its high-growth trajectory Annual growth in tax collections Percentage (%) 4

5 SARS collected a record R813.8 billion in 2012/13, continuing its high-growth trajectory Annual growth in tax collections Percentage (%) 5

6 % Revenue per tax type in 2012/13 (p17) Source: SARS 2012/13 Annual report pg. 17 6

7 Tax to GDP ratio trendline Tax to GDP ratio R billion % Source: SARS 2012/13; Annual report pg. 18 7

8 Debt reduced by R6.4 billion. Overdue Debt R billion % Source: SARS 2012/13; Annual report pg. 34 8

9 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 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

10 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 million registered taxpayers and traders (11% increase) Income Tax for Individuals register, 15.4 million (12.5% increase) Filing on time PIT % (3.47% improvement) PAYE 71.25% (4.12% improvement) Source: SARS 2012/13; Annual report pg

11 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/ % 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 ;

12 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 reengineered 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

13 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

14 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

15 Thank you 15

16 Tax revenue performance by tax type for 2012/13 Tax type Printed estimate Feb 2012 Revised estimate Feb 2013 Actual result Increase / decrease on Printed estimate Increase / decrease on Revised estimate R million R million R million R million R million Personal income tax (PIT) Company income tax (CIT) Secondary tax on companies (STC) / Dividends tax (DT) Value-added tax (VAT) Domestic VAT Import VAT VAT refunds Fuel levy Customs duties Specific excise duties Taxes on property Skills development levy Other taxes and duties Total tax revenue Customs revenue * Tax revenue (excluding customs revenue) Total tax revenue Note: * Customs revenue includes Import VAT, Customs duties, Miscellaneous customs and excise and Incandescent light bulb levy. Source: SARS 2012/13; Annual report pg

17 Budget revenue performance for 2012/13 Tax type Printed estimate Feb 2012 Revised estimate Feb 2013 Actual result Increase / decrease on Printed estimate Increase / decrease on Revised estimate R million R million R million R million R million Tax revenue Non-tax revenue Mineral and Petroleum Resource Royalties Mining leases and ownership Other non-tax revenue received at National Treasury * Less: SACU payments Total budget revenue Note: * The figures for other departmental revenue received at National Treasury are preliminary and unaudited. Source: SARS 2012/13; Annual report pg

18 Global collaboration with other stakeholders Stakeholder Description of collaborative efforts ATAF SARS holds the Chairperson s position and the position of the interim secretariat of ATAF WCO GFTEI FTA IBSA BRICS SARS was elected as the Deputy Vice Chair of the WCO Eastern and South African Region Mr Kosie Louw was elected as Chair for 2013/14 SARS championed the Tax Inspectors without Borders initiative and hosted the 5th plenary meeting. SARS continues to build on existing partnerships and explore new opportunities for co-operations. SARS hosted the inaugural BRICS Heads of Customs Administrations meeting. Source: SARS Annual report, pg