SMME taxpayers' view with regards to SARS relief measures for SMMEs

Abstract

Small, medium and micro enterprises (SMMEs) have become a crucial part of the South African economy both in terms of overall contribution to the country‟s gross domestic product (GDP) as well as employment generation. Their sustainability is therefore critical to sustain the growing GDP and job creation. Although SMMEs contribute significantly to the South African economy, these businesses have a very high failure rate. The taxation burden and the impact of taxation on cash flows have been identified as one of the factors contributing to this failure. Relief measures, such as progressive tax rates, immediate and accelerated deduction of the cost of an asset, turnover tax and an increased value added tax (VAT) registration threshold have been implemented by SARS in order to address the taxation burden as experienced by SMMEs. This study aimed to establish the taxpayer‟s view with regards to the relief measures as implemented by SARS. In order to establish this view, respondents were interviewed and the results of these interviews were analysed. This study found that only some of the respondents were aware of the relief measures available to them. The study further found that the available relief measures were not applicable to some of the respondents who were aware of them and, were the relief measure were applicable, the respondents did not always take advantage of them As a result of the findings of the study, it was recommended that SMMEs should take more control of the cost savings in their businesses. This can be done through making all efforts to learn about the relief measures available to them and weighing the costs to the benefits of taking advantage of these relief measures. It was further recommended for SARS to invest in programmes that will assist SMMEs in becoming more aware of the measures available to provide tax relief to these businesses. AFRIKAANS : Oor die jare het klein, medium en mikro besighede (SMMEs) 'n deurslaggewende rol begin speel in die Suid Afrikaanse ekonomie, beide in terme van die algehele bydrae tot die land se bruto binnelandse produk (BBP) asook die skep van werksgeleenthede. Juis hieroor is hulle voortbestaan krities vir die konstante groei van die BBP en die skep van werksgeleenthede. Alhoewel SMMEs 'n wesenlike bydrae tot die Suid Afrikaanse ekonomie maak, het hierdie besighede 'n hoë mislukkings-koers. Die belasting las en die impak daarvan op kontantvloei is geïdentifiseer as een van die faktore wat bydrae tot hierdie mislukking. Verligtingsmaatstawwe, soos progressiewe belasting koerse, onmiddellike en versnelde aftrekkings van die koste van 'n bate, omsetbelasting en 'n verhoging van belasting op toegevoegde waarde se registrasie drumpel is deur SARS geïmplementeer om die las van belasting aan te spreek wat deur SMMEs ervaar word. Hierdie studie se doel is om die belasting betaler se oogpunt in te sien rakende sodanige verligtingsmaatstawwe wat deur SARS geïmplementeer is. Ten einde die belasting betalers se oogpunt oor die verligtingsmaatstawwe wat deur SARS geïmplementeer is vas te stel, is daar onderhoude gevoer met deelnemers aand die studie en die uitslae daarvan is ge-analiseer. Hierdie studie bevind dat slegs sommige van die deelnemers bewus is van die verligtingsmaatstawwe wat tot hul beskikking is. Die studie bevind verder dat die verligtingsmaatstawwe wat beskikbaar is nie van toepassing was op van die deelnemers wat daarvan bewus was nie en waar die verligtingsmaatstawwe wel van toepassing is, het die deelnemers nie altyd daarvan gebruik gemaak nie. As gevolg van die studie se resultate, is SMMEs aangeraai om meer beheer uit te oefen om van die koste besparings gebruik te maak deur pogings aan te wend om meer te leer oor die verligtingsmaatstawwe wat tot hul beskikking is en die kostes van hierdie voordele op te weeg teenoor die voordele van die verligtingsmaatstawwe. Verder is voorgestel dat SARS meer in programme moet belê wat SMMEs sal bewus maak van die maatstawwe wat beskikbaar is om 'n groter belasting verligting te verkry vir hierdie besighede.