SARS recovery – Is there hope?

The mountain that stood before Edward Kieswetter and his team when he took over the reins from acting commissioner Mark Kingon should not be underestimated. The wake of destruction from mismanagement was visible and restoring SARS to its former glory was dubbed by many as being impossible. I, however, remain optimistic, and believe in the words of the great Madiba - “It always seems impossible, until it is done.”

From day one, Kieswetter knew that hope and trust needed to be restored before any meaningful changes could be made at SARS - not only that of the SARS staff but that of the entire South African public, who were at their wits’ end with the SARS systems, procedures and seemingly underhanded methods of window-dressing the tax collection figures.

Gaining trust, unfortunately, does not happen overnight. The slogan of one of South Africa’s most successful fund managers sums it up perfectly: “trust is earned”.

Kieswetter spent his first 100 days in the office meeting with SARS staff, keenly listening to what they had to say. He used his time to schedule conferences in order to educate the public and clearly explain his vision of a restored SARS. He met with the private sector to communicate the progress he had made and how they could assist him, and he met with auditors and tax specialists at leading firms to gain their buy-in and restore confidence. Finally, and not to be overlooked, he used his political prowess to ensure that there was no unnecessary political intervention. The new SARS ship would only have one captain.

Many could describe these actions as mere talk, without ‘walking the walk’. However, it has been his recent steps that have kindled hope, and in particular his use of technology. Much has been said about the Fourth Industrial Revolution, in essence, the embracing of technology. Technology has made possible new products and services that increase the efficiency and pleasure of our personal lives, and SARS has grabbed this opportunity with both hands.

Technology can only be used with reliable information and converting data into useable information is where the true value becomes apparent. 

Even though there will be many teething problems, the use of technology will greatly improve the SARS systems. Kieswetter quickly identified that SARS staff were being kept busy with taxpayers who are unwilling to use technology and that his branch staff could be much better utilised if the public could be won over to use the e-filing or SARS app platforms. 

Additionally, SARS’s handling of the COVID-19 pandemic has been first-class, and its staff’s transition to working from home would not have been as easy if technology had not been embraced early on. While the true rewards of these changes will not materialise immediately, given they require meticulous planning, preparation and implementation, there is light at the end of the tunnel.

I have great respect for what Kieswetter is trying to implement at SARS, and if he keeps doing what he is doing, SARS can be restored. Unfortunately, the measure of his success during the current economic climate is virtually impossible, and we will only see the true fruits thereof in years to come.

Nonetheless, I believe there is evidence that the proverbial SARS phoenix is stirring amidst the ashes.

Author: Tertius Troost, Manager, Tax Consulting