South Africa to Prosecute Taxpayers Who Don't File Returns

(Bloomberg) -- The South African Revenue Service and National Prosecuting Authority will prosecute taxpayers who fail to submit returns.

This includes “prominent South Africans,” the revenue service said in an emailed statement on Monday. Taxpayers owed SARS about 30 million returns at March 31, its records show.

The move to prosecute people failing to submit returns is part of a shake-up at the revenue service after President Cyril Ramaphosa removed Tom Moyane as commissioner last month. Under-collection of taxes increased under Moyane and he clashed with former Finance Minister Pravin Gordhan over plans of a management and systems overhaul at SARS.

Finance Minister Nhlanhla Nene said on April 3 the increase in outstanding returns shows a deterioration in tax compliance and will be addressed. The Treasury in February reported a revenue shortfall of 48 billion rand ($4 billion) for the 2018 fiscal year.

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