Hon Deputy Speaker, hon members and fellow South Africans, I think that before I begin with my speech I need to make a distinction between a government and those that aspire to being a government, because these are two different streams.
If you are a government, you are going to be practical. You are going to be looking at the issues before you, applying your mind to them and expressing your purpose, which is to come up with a creative solution to the problems. If you are an aspirant government, you lament as in the case of hon Swart, you lament as in the case of hon George, and you lament as in the case of hon Shivambu. [Interjections.]
Really, let's face the facts. The DA is now saying that we must look at recovering the R30 billion that we are losing through corruption. Obviously we all agree that there is not supposed to be corruption, and we have to fight it. However, how is it going to be possible to recover that in the short term? We have to be practical!
The DA is becoming very populist and is drifting away from practical solutions at a speed faster than lightning. They have become like a broken record. In the face of a collective challenge that we ought to be addressing together as a nation, they are simply lamenting.
On the one hand the DA purports to be supporting the National Development Plan, yet, instead of adding its voice in support of these tax Bills, they are now saying they are not supporting the tax Bills. If you want this National Development Plan to be implemented, why are you not supporting the tax Bills? That is the only way any civilised society can move forward. The ANC, consistent with its principles of open democracy, allows the opposition to make submissions. Hon Shivambu is now telling us that maybe there was something inadequate on our part. [Interjections.]
Hon Shivambu, let me remind you that tax base erosion and profit shifting was first identified by J F Kennedy in 1961. [Interjections.] Let us tell you this. We are also going to tell you what the ANC has done since 1994, because when we came in we identified tax avoidance as a problem and we are going to tell you about that for your own purposes. [Interjections.] I have repeatedly said to you, hon Shivambu, that you should read - it empowers you. [Interjections.]
If you go to the Sars Compliance Programme of 2012-13 to 2016-17, you will see that it identifies seven broad focus areas. One of those is tax avoidance structures, which have inflated deductions through circular flows of money. If this does not deal with that, then what is your understanding of tax base erosion?
The reason that we gave you an opportunity to speak is because we realise that it looks like you have a misplaced understanding ... [Interjections.] ... of what base erosion and profit shifting is. [Interjections.]
I think I should now rather address myself to the citizens of South Africa. In the Business Day of 5 November 2014, Hilary Joffe writes: "Nene can only go so far in taxing the top earners." In the same issue, Amanda Visser, a Pretoria correspondent, warns: "Citizens pay even more tax than firms. The South African tax burden (on individuals) has steadily increased over the past four years ..."
Now, in considering these tax Bills, the ANC has taken into account the views and concerns of citizens. The views expressed by a range of stakeholders and South African citizens have found expression in the tax Bills.
Admittedly the challenges we confront in respect of tax base erosion and profit shifting cannot be viewed outside the digital economy and the increasingly worrying decline in morality of multinational enterprises, who are hellbent on maximising profits by avoiding paying taxes. That is putting a burden on individual citizens and poor households in particular. [Interjections.]
The approach of the ANC on tax issues is as follows - and please listen carefully so that you don't misquote us. [Interjections.] Taxes from both citizens and business enterprises are the only vehicle towards a sovereign, prosperous nation, which is not dependent on foreign aid and can therefore govern itself without fear and be 100% accountable to its citizens. That is our position.
Those who avoid taxes are pursuing an antidevelopment agenda and are undermining the agenda to create an equal society where every citizen has equal opportunities of success.
Therefore, in 2007 the ANC-led government introduced the very comprehensive General Anti-Avoidance Rule, Gaar. This was subsequently incorporated in the income tax of 2007. Therefore, anyone who speaks about tax base erosion and profit shifting as if they have just uncovered a witness in this area are telling lies. I would have expected that hon Shivambu would have known Amlcar Cabral, one of our outstanding intellectuals, who once warned of those who tell lies so that they can claim easy victories. It is within this context that we expose these lies.
Citizens like Joffe and Visser, and many other citizens, are concerned about the implications of our contracting economy and the downgrading of our financial institutions, and therefore the possible and the inevitable, which is raising the shortfall in our fiscus. As the ANC, we demonstrate our commitment to resolving our economic and financial challenges ... [Interjections.] ... together with our citizens.