Economic Freedom Fighter’s Senior Researcher, Gumani Tshimomola argues that illicit financial flows and transfer mispricing has been a burden to South Africans and that answers why the government has been struggling to address the socio-economic inequality.
EFF notes that they have submitted to the Davis Tax Commission a research titled ” Illicit Financial Flows and Transfer Mispricing- A Burden To South Africans” which aims to expose some of the illicit financial flows in tax collection structure and revenue.
“To understand illicit financial flows, one must understand how the tax period works and how we collect out taxes in terms of structure and revenue,” said Tshimomola.
Tshimomola adds that on regular basis SARS collects taxes and that money is what is used and that majority times when talking about tax revenue, it is about estimated figures.
“Where do we get tax? In total for the 2019/2020,we collected an estimated R1,3 Trillion as tax revenue in it’s totality. Majority of the tax comes from workers,” he said.
Tshimomola says the R1,3 Trillion is consisting of Personal Income Tax, Corporate Tax, VAT and other smaller taxes and there’s no way a country can move forward in addressing socio-economic inequality while collecting tax in that manner.
“There is no way you can collect tax in that manner which we have been doing as South Africa and be able to take the nation forward or even address the socio-economic ills prevalent in our societies,” he said.