Taxpayers' perception towards SARS in post-apartheid South Africa : 2018-2022 period

Abstract

Background The 27th of April 1994 marked South Africa's first post-apartheid elections and it also meant that South Africa’s laws and administrative functions needed to change to reflect a new and inclusive democratic South Africa (Public Affairs Research Institute, 2017:25). The new South African government established the Katz Commission in 1994 which was tasked with improving tax administration in South Africa, modernising the tax system and ensuring the tax system was equitable (Public Affairs Research Institute, 2017:27). The Katz Commission recommended an institutional reform of the South African tax administration office (which resulted in the establishment of the South African Revenue Service (SARS) in 1997 as a semi-autonomous national tax collection agency under the South African Revenue Service Act 34 of 1997 (Katz Commission, 1994; South African Revenue Services, 2022). It also recommended that the perceptions of tax by taxpayers needs to be addressed.

Main purpose of study This study aims to determine taxpayer perceptions towards SARS during the 2018–present period (2022) as well as factors that influence taxpayer perceptions with regards to taxation were investigated. Limited research has been conducted on taxpayers’ perception; as such, there is a limited understanding of what taxpayer perception towards SARS is in the post-apartheid era. The study will therefore provide policymakers with insight on taxpayers' perception, resulting in tax policy changes and improved tax administration by SARS.

Method The data for the study was collected through an online questionnaire. The questionnaire consisted of 16 questions which were compiled from an extensive literature review. Questions 1–13 of the questionnaire were close-ended questions; responses were analysed using a descriptive analysis approach. Questions 14–16 were open-ended questions and responses were analysed using a content analysis approach. This study therefore made use of both qualitative (for open-ended questions) and quantitative data (for close-ended questions).

Results and conclusion This research found that corruption and the poor service delivery contributes largely to the negative perception towards SARS and taxation in South Africa. Taxpayer perception is largely influenced by how the government utilises the tax revenue collected. The study recommends that the South African government work on service delivery and eradicate corruption.