Pretoria - Steps will be taken against those who do not comply with tax laws, warned Finance Minister Pravin Gordhan.
Delivering his Budget Vote on Tuesday, Gordhan said third data from employers and financial institutions have proved highly effective in indentifying cases of tax evasion including employers withholding PAYE deductions and taxpayers failing to disclose interest and other income.
"It remains a central focus of SARS's work that all taxpayers should pay their fair share. This, regrettably, is still not the case. Several further steps will be taken to improve compliance in the year ahead," he said.
He added that those collecting grants unlawfully will be taxed and punitive measures will be taken against them and payments to these individuals will be discontinued with immediate effect.
Additionally, as of September SARS will require all who receive employment income even those below the tax threshold to be registered with SARS in order to help reduce the scope for non-compliance.
For those seeking refuge in tax havens, the net is closing in as SARS and other jurisdictions have agreed to share information on this, he said.
"Agreement in principle on the text of Tax Information Exchange Agreements has been reached with the Bahamas, Bermuda, Cayman Islands, Guernsey, Jersey and San Marino.
"Negotiations are in progress with another three jurisdictions and four more have signalled an interest in negotiations. The world is indeed becoming a smaller place for those non-taxpayers who refuse to contribute their fair share," said Gordhan.
Meanwhile, Gordhan said relations between the ministry and the Reserve Bank remain strong and were critical to "our successful negotiation of the uncertainties of the current financial environment".
Treasury has tabled proposals to further secure the independence of the central bank.
"We have a duty not just to protect the integrity of our central bank, but also to affirm its role as a source of statistics and economic analysis, as supervisor of our banking system and as the centre of our international payment system. The Reserve Bank also plays a leading role in the development of the banking and payment systems in the wider region," he said.
Gordhan said that in future a new agency, the Government Pensions Administration Agency, is to report to Parliament on the administration of pensions on behalf of both the Government Employees Pension Fund, which pays pensions to former civil servants and the National Treasury.
