Communication is key to reducing tax disputes

WITH A shrinking tax base, weak economic activity and a revenue shortfall, the South African Revenue Service (Sars) was already under pressure last year to collect revenue, which is why collection this year is likely to be even more aggressive.

Last month, Sars Commissioner Edward Kieswetter told Parliament that the 2019/20 tax year (ending before the Covid-19 pandemic had taken hold) had been battered by high public debt, underperforming state-owned entities, unreliable electricity supply, low business confidence and poor economic conditions.