Sars commissioner new Chair of Europe tax forum

By Frank Nxumalo
Pravin Gordhan, the Commissioner of South African Revenue Services (SARS) has been appointed as the new Chair of the Forum on Tax Administration (FTA) of the Organisation of Economic Cooperation and Development (OECD).

The OECD was founded as an economic cooperation and development think-tank for mostly European Union countries more than 40 years ago. However in May 2007 OECD countries opened membership to Chile, Estonia, Israel, Russia and Slovenia and entered into discussions with Brazil, China, India and Indonesia with view to possible membership.

The FTA itself brings together commissioners from 30 OECD member countries and non-OECD economies to share information and experiences and to develop best practices for tax administration in the areas of taxpayer service and compliance. The diversity of FTA membership provides a unique opportunity for heads of national revenue bodies to meet and discuss key issues of interest.

With between 35-45 countries typically represented at each meeting and discussions focused around issues of major importance, the FTA has become the forum of first choice for heads of national revenue bodies to interact with their counterparts.

“It is a tremendous honour for South Africa and SARS to be elected to chair the Forum by the heads of the OECD tax administrations and so to contribute to addressing the challenges faced by tax administrations globally. What makes this especially significant is that South Africa is an observer to the OECD’s Committee on Fiscal Affairs and not a full member,” Gordhan said.

Gordhan said the immediate priorities for the FTA arising from its meeting in Cape Town in January 2008 were to “build on the FTA’s study into the role of tax intermediaries, including a review of the role played by banks and high net worth individuals in aggressive tax planning.”

“Better understand global trends in business and their implications for tax administrations, contribute to establishing an International Tax Centre on the African continent in order to build capacity amongst African tax and customs administrations”.

Gordhan joined SARS as Deputy Commissioner in March 1998 after a successful term as member of South Africa’s National Assembly during which he was Chair of the Parliamentary Portfolio Committee on Constitutional Affairs, which had oversight over the implementation of South Africa’s new constitutional order after 1994. In November 1999 he was appointed SARS Commissioner.