SARS dismantled unit responsible for collecting third of total revenue

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The SARS inquiry in Pretoria has heard that the restructuring which took place under currently suspended Commissioner Tom Moyane’s leadership dismantled a specialized unit responsible for collecting a third of SARS’ total revenue.

The Large Business Centre(LBC) unit handled tax for corporates and high net-worth individuals with an annual turnover of over R100-million.

The restructuring, which was carried out by Bain Consulting Agency, has been criticized by a tax professional presenting oral evidence before the inquiry.

The restructuring project has also been widely slammed at the commission as inefficient and destructive.

An executive at SARS, Vincent Sibande says: “I personally had no reason to doubt what the leadership had said because I believed that it was not being undone at that point in time. There was never a point where by people had said we are undoing the LBC. It became apparent as the new operating model was being rolled out that indeed this was being done away with.”

“In fact it was part of my mandate when I was being seconded to the LBC as the acting GE, that I needed to see the transition of the LBC into the new model.”

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