Chairperson, the SA Revenue Service performs a vital role in our economy. If Sars doesn't collect the revenue that it should, we will never be able to redress the distortions from our troubled past, and the most vulnerable members of our society will feel the consequences.
The Daily Telegraph reported that in the modest city of Larissa in Greece, there are more Porsche luxury motor vehicles per head of the population than in New York and London. Simply put: tax evasion in Greece is rife, and now it cannot pay its debts. In South Africa, there are apparently individuals who own aeroplanes, yet declare modest incomes and pay a minimal amount of tax. This isn't right. It is Sars' job to make sure that this problem is fixed, and it is our job to make sure that they have the tools to fix it.
The Tax Administration Bill aims to do this. The Bill forms part of a process of simplifying the taxation laws over time, and the DA welcomes this initiative. The Bill consolidates various provisions regarding the administration of taxation currently spread across various parts of the existing taxation laws. And the Bill makes various amendments to provide for the effective and efficient collection of tax.
To ensure that Sars is able to bring tax evaders into the revenue net, the tax collection process must give Sars sufficiently sharp teeth, yet also provide adequate protection to the law-abiding taxpayers from any possible overzealous tax-collection efforts.
Voorsitter, in enige land waar klein sakeondernemings van kardinale belang is om ekonomiese groei en werkskepping te fasiliteer, is dit belangrik dat belastingwetgewing nie 'n belemmering moet wees in die proses nie, maar dat dit juis moet bydra om dit makliker en goedkoper te maak om ondernemings te vestig en te administreer. Die wetgewing moet van so 'n aard wees dat alle bydraers moet ervaar dat dit ook in hulle belang is om daaraan te voldoen en dat hulle nie onnodig belas of selfs geteister of getreiter moet word daarmee nie.
In hierdie verband is ons almal bewus van die enorme vertragings wat ervaar is met die terugbetaling van BTW en brandstofheffings vroer hierdie jaar en die enorme negatiewe impak daarvan op die ekonomiese aktiwiteite en ook die negatiewe sentimente teenoor SAID. Die Minister is ook bekend met my sentiment oor die saak betreffende persone met gestremdhede en dat hulle nie terugwerkend belas moet word nie. (Translation of Afrikaans paragraphs follows.)
[Chairperson, in any country in which small businesses are crucial in order to facilitate growth and job creation, it is important that tax legislation should not be a hindrance in the process but that it should contribute precisely to make it easier and cheaper to establish and administrate businesses. Legislation should be of such a nature that all contributors should experience that it is also in their interest to comply with it and that they should not be taxed or even harassed or exasperated by it unnecessarily.
In this regard all of us are aware of the enormous delays experienced with the paying back of VAT and fuel levies earlier on in the year and its enormous negative impact on the economic activities as well as the negative sentiments towards Sars. The Minister is also familiar with my sentiment on the issue concerning persons with disabilities and that they should not be taxed retrospectively.]
To ensure this balance, the Office of the Ombud is introduced to review and address any complaints by taxpayers regarding a service matter, a procedural matter, or an administrative matter arising from the application of the Income Tax Act, Act No 58 of 1962, by Sars. The DA has expressed its concern over the independence of the Ombud's office, given that it is financed through the Sars budget and that its staff is drawn from within Sars.
We are, however, satisfied that we will be able to monitor the performance of the Tax Ombud through the annual report to Parliament by the Minister of Finance.
Voorsitter, volgens die "Paying Taxes 2012"-verslag wat die Wreldbank, die Internasionale Monetre Fonds, en PricewaterhouseCoopers bekend gemaak het, het Suid-Afrika van die 24ste tot die 36ste plek op die ranglys teruggesak. Die meting het ten doel om die doeltreffendheid van die lande se belastingstelsels en die voldoeningslas vir maatskappye te meet. Dit is nie goeie nuus nie, en hopelik sal hierdie wetgewing ook bydra om hierdie posisie te verbeter.
Die regering van die Wes-Kaap het 'n benadering "From Red Tape to Red Carpet" van stapel gestuur wat daarop gemik is juis om dit makliker en goedkoper te maak vir die besigheidsektor om sakeondernemings te begin, dit winsgewend te bedryf en om volhoubare werkgeleenthede daarmee te skep. Dit is 'n benadering wat die regering ook moet volg in elke provinsie, want die Wes-Kaapprovinsie moenie 'n eiland van voortreflikheid in ons ekonomie wees nie. [Tussenwerpsels.] Ons het hierdie benadering oor die hele Suid-Afrika nodig en daarom hoop ek dat hierdie wetgewing ook sal help om by te dra om juis dit te vermag. (Translation of Afrikaans paragraphs follows.)
[Chairperson, according to the report "Paying Taxes 2012" made public by the World Bank, the International Monetary Fund, and PricewaterhouseCoopers, South Africa slipped from the 24th to the 36th position in the rankings. This rating has as its objective the measurement of the efficiency of the tax systems of countries and the liability of compliance of companies in such countries. This is not good news, and hopefully this legislation will also assist to improve this situation. The government of the Western Cape launched an approach "From Red Tape to Red Carpet" which aims to make it easier and cheaper for the business sector to start businesses, to manage them in a profitable manner and to create sustainable jobs through them. It is an approach which the government should follow in each province, because the province of the Western Cape should not be an island of excellence in our economy. [Interjections.] We need this approach throughout South Africa and I therefore hope that this legislation may also help to achieve exactly this.]
Over 400 amendments were made to the Bill after its First Reading during its progress through the Standing Committee on Finance, and stakeholders are broadly satisfied with its contents. The DA will support the Bill and will closely monitor its application in the field. I thank you. [Applause.]