600,000 tax clearance certificates issued

Requests for tax clearance certificates from the South African Revenue Service (SARS) have increased to more than 600‚000 per year.

Finance Minister Pravin Gordhan said in the medium-term budget policy statement that tax compliance was used as a determinant of "good standing" when the state had to decide whether to award a government tender or not.

Tax clearance certificates are a necessary tool used by government to determine the tax compliance of a company‚ yet there had been corruption in the process of issuing the certificates.

Gordhan said SARS had developed an electronic mechanism for taxpayers to provide real-time‚ up-to-date and continuous tax status to interested parties.

The use of a unique one-time access pin will significantly reduce the scope for fraud and abuse of paper-based tax clearance certificates‚ he said.

The changes will be implemented at the start of the next financial year.


 
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