SARS plan to review South African customs policies may very likely be a shot in the arm for entrepreneurs in South Africa according to this article by SAPA:

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Customs policy is to be reformed to ensure optimal use of trade opportunities while enhancing security against smuggling and money laundering, the SA Revenue Service (SARS) said on Monday.
"To take the customs component in SARS to a new level of sophistication and capability ... we will embark on a process of consultation on a new operational framework for customs," SARS commissioner Pravin Gordhan told reporters in Cape Town.

A discussion document, in the form of a green paper, would be released shortly.

Overhaul necessary

The overhaul was necessary to ensure customs policy was aligned with the government's developmental aims and recent international developments, he said ahead of the national treasury budget vote debate.

South Africa's bilateral trade negotiations, as well as recent developments in the World Customs Organisation and World Trade Organisation required a review of policy and capacity.

South Africa also faced new dangers in the form of illegal trafficking of goods, international crime, smuggling, and money laundering.

"South Africa's customs capability must be modernised and significantly increased if we are to optimally facilitate trade ... and ensure better security of the trade supply chain and protection of our economy," said a background document released at the briefing.

Stronger enforcement

The review should allow exporters and importers to do their work more efficiently, thereby helping to grow the economy, while also focusing on stronger enforcement, said Gordhan.

Finance Minister Trevor Manuel said an audit would be held of intra-SACU (Southern African Customs Union) trade, of which currently "we don't have a very good idea".

Discussions were also underway on the creation of a SADC-wide (Southern African Development Community) customs union.

Gordhan said the SARS would launch a programme aimed at improving its service to tax and customs practitioners. A consultation process would be launched to establish practitioners' needs.

"Among the initiatives being considered are: determining the preferred channels, the creation of dedicated access facilities, significantly increasing the number of filings and payments done electronically, and finding collaborative ways of reducing compliance costs," said the statement.

Tax avoidance

On tax avoidance, dialogue has been ongoing with taxpayers and practitioners regarding the need for stricter rules. But concerns were expressed over the unintended impact of impending new legislation or legitimate or innovative business transactions.

"We will be releasing revised proposals in the near future for additional comment," the statement said. A final draft would be included in the Revenue Laws Amendment Bill to be tabled in parliament this year.

Gordhan said meetings were being held with small business representatives and the taxi industry on a special amnesty for the sector.

Not dealing with properly

The process has revealed the SARS' was still "not properly dealing with all South Africans alike". "Our reach is inadequate," said the commissioner.

"We need to do more to inform them before we can even start to enforce."

National treasury director-general Lesetja Kganyago said his department had declined 20 of the total applications received under a recent exchange control and tax amnesty process.

Assets totalling R68.6bn were declared, and R2.9bn was raised in the form of levies.

"I never believed that we had so many rich South Africans. This is testimony to the fact that the country is actually doing very well."

SAPA
http://www.fin24.co.za