Number Of Tax Returns Received By SARS Has Doubled Since Last Year

by Robert Lee, Tax-News.com, London

14 July 2004

According to the South African Revenue Service, almost 2 million tax returns have been filed in the current fiscal year, almost double the number filed by the same point last year, thanks to improved collection methods and a widening of the tax base.

Treasury forecasts expect gross tax revenues to reach R334 billion in the fiscal year 2004/2005, up from the R303 billion collected by the tax authorities last year, no doubt helped by a 200,000 increase in the number of registered taxpayers.

The boost in tax returns has also allayed fears of a modest increase in the budget deficit to 2.6% and an erosion of revenues by the strength of the rand.

Tasneem Karim, a spokesperson for SARS noted: "We have received more than 1.9 million tax returns so far, compared with just over 1 million at this time last year."

"There will be a positive impact but we can't say by how much,” she added.

SARS, which extended the filing deadline to July 10, issued some 3.8 million tax returns this year.

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