1 00:00:00,040 --> 00:00:04,120 Speaker 1: Alright, twenty four minutes past four and just before we 2 00:00:04,240 --> 00:00:08,520 Speaker 1: started the show, the news of a new Sarus commissioner broke. 3 00:00:08,640 --> 00:00:13,040 Speaker 1: His name is doctor Gobani Markkubu and he has been 4 00:00:13,240 --> 00:00:17,040 Speaker 1: a deputy commissioner. So he's no new person or no 5 00:00:17,160 --> 00:00:21,439 Speaker 1: new face to SARS. But what does his appointment mean. 6 00:00:21,840 --> 00:00:24,959 Speaker 1: I mean, for me at least, it speaks to continuity. 7 00:00:25,160 --> 00:00:26,640 Speaker 1: But I think there's a lot more that you can 8 00:00:26,680 --> 00:00:30,360 Speaker 1: take for the appointment of Makumo and joining us for 9 00:00:30,400 --> 00:00:32,800 Speaker 1: that conversation. Someone who's going to be helping us analyze 10 00:00:32,800 --> 00:00:35,760 Speaker 1: this is Joshuin By Drew, a partner and the head 11 00:00:35,760 --> 00:00:40,600 Speaker 1: of Strategic Engagement and Compliance at Tax Consulting SA. Joshua, 12 00:00:40,640 --> 00:00:41,479 Speaker 1: good afternoon, Thank. 13 00:00:41,320 --> 00:00:44,160 Speaker 2: You so much for your time, Good afternoon, and thank 14 00:00:44,159 --> 00:00:45,160 Speaker 2: you for having me on today. 15 00:00:45,640 --> 00:00:48,479 Speaker 1: I think we were all anticipating that the person that 16 00:00:48,520 --> 00:00:51,159 Speaker 1: would be appointed would be one of the deputies. It 17 00:00:51,159 --> 00:00:54,280 Speaker 1: would be someone who's not a stranger to sorrow. So 18 00:00:54,400 --> 00:00:56,480 Speaker 1: this doesn't come as a surprise, does it. 19 00:00:57,760 --> 00:01:00,560 Speaker 2: No, not at all, And I mean from from our 20 00:01:00,640 --> 00:01:06,080 Speaker 2: prior discussions with senior leadership at SALZ, you know, we've actually, 21 00:01:06,440 --> 00:01:08,880 Speaker 2: quite frankly, we were expecting that that it would be Johnson, 22 00:01:09,200 --> 00:01:11,920 Speaker 2: because you know, doctor mccoub is no outsider. He's been 23 00:01:11,959 --> 00:01:15,560 Speaker 2: a part of our leadership, specifically in recent years serving 24 00:01:15,560 --> 00:01:20,560 Speaker 2: as Deputy Commissioner for Tax pay Engagement Operations and beyond that, 25 00:01:21,080 --> 00:01:24,160 Speaker 2: while he also worked very closely with the current Commissioner 26 00:01:24,160 --> 00:01:28,280 Speaker 2: Commissioner Key Swetter in the formulation of Salz's strategic direction 27 00:01:28,400 --> 00:01:32,000 Speaker 2: since twenty twenty, meaning all of their compliance programs, their 28 00:01:32,000 --> 00:01:35,679 Speaker 2: strategic objectives, et cetera. He was part and parcel of it. 29 00:01:35,760 --> 00:01:38,120 Speaker 2: So you're absolutely right right when you say what you 30 00:01:38,200 --> 00:01:39,760 Speaker 2: expect is continuity. 31 00:01:40,720 --> 00:01:43,759 Speaker 1: And Kiswa has been praised really for the turnaround that 32 00:01:43,800 --> 00:01:47,360 Speaker 1: he's managed to achieve at SARRUS, and I suppose all 33 00:01:47,360 --> 00:01:49,520 Speaker 1: of us have been wondering what's it going to take 34 00:01:49,560 --> 00:01:52,320 Speaker 1: to maintain this at least? Yeah, I mean it would 35 00:01:52,360 --> 00:01:55,080 Speaker 1: be better if it could be improved, right, and we 36 00:01:55,120 --> 00:01:59,200 Speaker 1: see an increase really as it comes to the new collections. 37 00:01:59,280 --> 00:02:03,480 Speaker 1: But what does disappointment mean really for that continuity and 38 00:02:04,240 --> 00:02:07,280 Speaker 1: you know, continue with the strategy that has been applied. 39 00:02:08,520 --> 00:02:11,639 Speaker 2: So well, one it is it is a strategic move, right, 40 00:02:11,720 --> 00:02:14,960 Speaker 2: Let's let let's be honest and any sort of major 41 00:02:15,480 --> 00:02:19,680 Speaker 2: leadership shift at SAUCE could influence the future of tax 42 00:02:19,680 --> 00:02:22,919 Speaker 2: administration or what this means for taxpayers is one it 43 00:02:23,000 --> 00:02:28,360 Speaker 2: signals continuity, two improved efficiency, and three a continued focus 44 00:02:28,400 --> 00:02:30,920 Speaker 2: on compliance in the years ahead. And the reason I 45 00:02:30,960 --> 00:02:34,800 Speaker 2: say that is because when you look at SAUCES statistics 46 00:02:34,919 --> 00:02:40,080 Speaker 2: and especially the record two trillion in collections, while a 47 00:02:40,200 --> 00:02:45,400 Speaker 2: solid increase, there was actually from SURCES targeted compliance programs, 48 00:02:45,880 --> 00:02:50,200 Speaker 2: which year on year yielded an additional twelve point four 49 00:02:50,240 --> 00:02:53,960 Speaker 2: billion from last year coming in this year at three 50 00:02:54,080 --> 00:02:58,360 Speaker 2: hundred and sixteen point thirty nine billion in additional compliance 51 00:02:58,400 --> 00:03:01,880 Speaker 2: revenue which is collect through these compliance programs. If we 52 00:03:02,000 --> 00:03:05,639 Speaker 2: compound that with sausa's modernization three point zero and their 53 00:03:05,800 --> 00:03:11,280 Speaker 2: use of data driven insights, analytics, transactional reporting, et cetera, 54 00:03:11,800 --> 00:03:15,840 Speaker 2: what we anticipate is that we are going to have 55 00:03:16,360 --> 00:03:22,240 Speaker 2: a revenue authority under the guidance of doctor Mukovo that 56 00:03:22,440 --> 00:03:26,960 Speaker 2: will continue to improve and enhance not just their systems 57 00:03:27,360 --> 00:03:32,079 Speaker 2: but also taxpayer treatment. And in the words of Key Swetter, 58 00:03:33,160 --> 00:03:34,560 Speaker 2: that should just happen. 59 00:03:36,280 --> 00:03:39,440 Speaker 1: And watch macob will be prioritizing. I mean, you know, 60 00:03:39,520 --> 00:03:43,280 Speaker 1: of course you highlight that a record to trillion random collections. 61 00:03:43,280 --> 00:03:46,640 Speaker 1: But also I suppose you know, we keep speaking about 62 00:03:46,680 --> 00:03:49,920 Speaker 1: a list of priorities, what exactly should they should he 63 00:03:50,000 --> 00:03:51,240 Speaker 1: be prioritizing in this time? 64 00:03:52,960 --> 00:03:56,000 Speaker 2: Well, I mean, one one, prioritization is always the collection 65 00:03:56,040 --> 00:03:58,840 Speaker 2: of tax revenue. I mean its literally sarsa's mandate. But 66 00:03:59,240 --> 00:04:02,120 Speaker 2: if we look at our current tax buoyancy sitting at 67 00:04:02,120 --> 00:04:07,640 Speaker 2: one point seven, well we're highly buoyant. So prioritization is 68 00:04:07,720 --> 00:04:10,560 Speaker 2: dependent on who you ask. But one key item that 69 00:04:10,760 --> 00:04:14,760 Speaker 2: is being prioritized is the increasing of the voluntary Compliance 70 00:04:14,800 --> 00:04:18,960 Speaker 2: index because that has since the implementation of Vision twenty 71 00:04:19,000 --> 00:04:23,680 Speaker 2: twenty four increased by three point four percent. And that 72 00:04:23,880 --> 00:04:29,000 Speaker 2: is a case of taxpayers now because of system upgrades 73 00:04:29,040 --> 00:04:34,360 Speaker 2: and basically their tax user experience being more streamlined now 74 00:04:34,440 --> 00:04:39,400 Speaker 2: voluntarily coming forward to be compliant to pay their taxes 75 00:04:39,720 --> 00:04:42,120 Speaker 2: instead of kind of hiding in the shadows. And I 76 00:04:42,160 --> 00:04:44,719 Speaker 2: think that that is a win for the revenue authority. 77 00:04:45,279 --> 00:04:48,200 Speaker 1: All right, Joshuan Baidu, thank you so much for your time. 78 00:04:48,240 --> 00:04:51,600 Speaker 1: He's a partner and head of Strategic Engagement and Compliance 79 00:04:51,960 --> 00:04:54,000 Speaker 1: at Tax Consulting South Africa.