Taxpayer trust wanes

PUBLIC CONFIDENCE: MORE IS NEEDED TO IMPROVE TAX COMPLIANCE

- Amanda Visser

• Taxing Times survey notes lack of knowledge by staff has massive impact.

Taxpayers' trust in the South African Revenue Service (SARS) has stagnated over the past 12 months, although the overall taxpayer experience when dealing with the government agency has improved.

Participants in the latest PwC Taxing Times survey note that the lack of knowledge by SARS staff has a massive impact on the trust they have in SARS. Some even feel "targeted" since they are audited every time they submit a return.

PwC director of tax controversy and dispute resolution Elle-Sarah Rossato says improved taxpayer trust is important. "It will eventually translate into restored public confidence, increased tax morality and ultimately the payment of tax."

PwC has been conducting the survey since 2018. This year the report reflects the impressions of 206 corporate taxpayers across 17 industries. The survey posed questions about the verification and audit processes, disputes, and SARS's service delivery.

Getting better, but...While there have been improvements in certain areas such as the finalisation of audits within shorter timeframes, there are still significant challenges. These include prolonged verification and audit processes, inconsistent service delivery, and a need to rebuild taxpayer trust.