Finance Minister Enoch Godongwana said out of 5 303 public entities, 404 owed the South African Revenue Services (Sars) a whopping R5.9 billion debt in PAYE and VAT.
Godongwana said R2.4bn was owed in PAYE and R3.5bn in VAT.
“Of the R5.9bn debt, R1bn is under dispute, leaving a balance of R4.9bn undisputed, of which R2.9bn is older than three years,” he said.
This takes place as 4 899 (92%) public entities and departments paid their PAYE, VAT and other tax obligations on time.
Godongwana would not name the defaulting public entities.
This was due to the taxpayer confidentiality provision of the Tax Administration Act.
“We are unable to provide any further specific taxpayer information including the list of the defaulting taxpayers.
“It should be noted further that the specific entities can provide directly to the parliamentary oversight bodies for such information.
“Sars information is limited to employer accounts and the defaulting taxpayer debt is at an aggregate entity level.
“Information on the affected employees is not yet available from the current tax administration data,” he said.
Godongwana was responding to parliamentary questions from Freedom Front Plus MP Wouter Wessels.
In June, the “Cape Times” reported that there were nine municipalities that have disclosed information on arrears of monthly statutory contributions to the pension funds.
Of the nine affected municipalities, six did not pay over R81.5 million collected from employee pension contributions.
Godongwana said Sars debt collection processes were employed to follow up on defaulting taxpayers and arrangements made to enforce that the debt was settled within reasonable time where feasible.
“Engagements with National Treasury to deduct from grants the necessary amounts to settle taxes owed to Sars have been evoked.
“This is the last resort following lack of co-operation or lack of positive response from defaulting taxpayers.
“It is genuinely concerning for state organs not to comply with the very tax laws that generate revenue that enables them to exist.
“This is in order to deliver on their respective mandates of rendering public service to South African citizens who are the taxpaying community.”
Cape Times