Abstract:
Background: The 27th of April 1994 was a momentous occasion for South Africa, as the country ushered in the age of democracy. This meant that many of South Africa’s laws and administrative functions needed to change, in order to reflect a new and inclusive democratic South Africa. One of the administrative functions, which saw significant change, was how tax administration is to be conducted in the country. This came about in the restructuring of the Inland Revenue Service and Custom and Excise Directorates into the semi-autonomous revenue-collection agency called The South African Revenue Services (SARS).
Taxpayers’ perceptions towards SARS are crucial for ensuring that the administration is both efficient and effective. Taxpayers’ perceptions are shaped by how much confidence taxpayers have in tax administrators and on how much authority the tax administrators are given within the confines of the law and the constitution.
Main purpose of the study: The study aims to gain some insight into taxpayers’ perceptions towards SARS during the 2009-2017 period. This study aims to provide an addition to the existing, limited research on taxpayers’ perceptions in South Africa; and also to provide a stepping-stone for future studies, which might assist policymakers to understand
the factors influencing taxpayers’ perceptions.
The Method: Data was collected through an online questionnaire The questionnaire included a combination of closed-ended, Likert and open-ended questions. Open-ended questions and Likert questions were analysed by using a descriptive statistical method. The closed-ended questions were analysed individually , by using a content-analytical approach. The results of the data gathered were analysed electronically, by using the computer
program of Microsoft Excel.
Results and Conclusions: Based on the results obtained from the questionnaire distributed, it was found that the factors affecting taxpayers’ perceptions in South Africa were: corruption, taxpayer-government exchange, fairness, efficiency and effectiveness, as well as the tax administration of SARS. Furthermore, taxpayers’ perceptions towards SARS are inconclusive; as there appeared to be both positive and negative perceptions of SARS during 2009-2017. The main driver for the change in perceptions is the increased levels of corruption, which resulted in state capture during this period.
