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Revolutionizing Tax Compliance: The Power of Collaborative Bargaining

  • Exceeding Revenue Targets: The South African Revenue Service (SARS) has surpassed its revenue collection target for the fiscal year 2023-2024, amassing over R 1.74 trillion, indicating a significant increase from the previous year's collection.
  • Governance Disparity: Dr. Sansia Blackmore highlights a concerning disparity in tax governance, emphasizing high taxes relative to African peers and deficiencies in governance and accountability metrics compared to OECD countries.
  • Advocating for Tax Bargaining: Dr. Blackmore advocates for the implementation of tax bargaining as a means to enhance tax compliance, proposing a shift towards an institutional environment that fosters dialogue, contestation, and cooperation between taxpayers and tax authorities.
Tax bargaining

Dr. Sansia Blackmore, a senior lecturer at the African Tax Institute located at the University of Pretoria, advocates for the implementation of tax bargaining as a means to enhance tax compliance within the country.

Her proposition follows an announcement by the South African Revenue Service (SARS) stating that it had exceeded its revenue collection target for the fiscal year 2023-2024. The total tax revenue amassed amounted to over R 1.74 trillion, marking an increase of R 54 billion compared to the previous year’s collection.

Dr. Blackmore underscores the necessity for SARS to intensify its efforts in deterring tax evasion. She highlights a concerning disparity in tax governance, noting, “We’ve got a negative tax governance link. So we’ve got very high taxes given our status relative to our African peers for instance. Our tax to GDP ratio compares quite favorably with OECD countries except on the governance metrics.”

She elaborates, pointing out the deficiency in governance and accountability within the tax system. Dr. Blackmore emphasizes the critical need for an institutional framework that facilitates tax bargaining. She asserts that fostering an environment conducive to engagement, contestation, and cooperation is imperative within a constitutional democracy.

In essence, Dr. Blackmore advocates for a paradigm shift in tax administration towards a model that encourages dialogue and collaboration between taxpayers and tax authorities. Such an approach, she believes, holds the potential to rectify existing governance shortcomings and enhance overall compliance with tax regulations.

In the realm of fiscal affairs, Dr. Sansia Blackmore, a distinguished figure in the academic sphere as a senior lecturer at the esteemed African Tax Institute situated within the University of Pretoria, brings forth a compelling proposition aimed at bolstering tax adherence within the nation.

Her proposal comes hot on the heels of an announcement from the South African Revenue Service (SARS), heralding the surpassing of its revenue collection target for the fiscal period spanning 2023 to 2024. SARS proudly declared an impressive total tax revenue accumulation exceeding R 1.74 trillion, marking a notable uptick of R 54 billion compared to the previous fiscal cycle.

Dr. Blackmore, with an astute eye for fiscal governance, underscores the imperative for SARS to fortify its stance against tax evasion. She highlights a glaring incongruity in the tax governance landscape, explicating, “We’ve got a negative tax governance link. So we’ve got very high taxes given our status relative to our African peers for instance. Our tax to GDP ratio compares quite favorably with OECD countries except on the governance metrics.”

Her elucidation delves deeper into the intricacies of governance deficiencies and the dearth of accountability within the tax framework. Dr. Blackmore, with a blend of sagacity and urgency, stresses the paramount importance of cultivating an institutional milieu conducive to tax bargaining. She posits that fostering an ecosystem that fosters dialogue, dissent, and collaboration is not just desirable but fundamental within the context of a constitutional democracy.

At its core, Dr. Blackmore’s advocacy advocates for a seismic shift in tax administration methodologies, steering away from traditional enforcement-centric models towards a more participatory approach. This paradigm shift, she contends, offers a promising avenue to rectify existing governance lacunae and cultivate a culture of compliance grounded in mutual understanding and cooperation.

Dr. Sansia Blackmore, a venerable authority in the field of fiscal jurisprudence, currently serving as a senior lecturer at the prestigious African Tax Institute housed within the University of Pretoria, presents a cogent argument advocating for the adoption of tax bargaining mechanisms as a catalyst for bolstering tax compliance within the nation’s economic framework.

Her recommendation comes as a timely response to the recent declaration by the South African Revenue Service (SARS) heralding the surpassing of its revenue collection target for the fiscal year spanning 2023 to 2024. SARS proudly announced a commendable achievement, with the total tax revenue exceeding the formidable sum of R 1.74 trillion, marking a substantial increase of R 54 billion compared to the preceding fiscal period.

Dr. Blackmore, armed with her profound insights into the intricate web of fiscal governance, draws attention to the pressing need for SARS to fortify its defenses against the scourge of tax evasion. She sheds light on a vexing paradox within the tax governance domain, remarking, “We’ve got a negative tax governance link. So we’ve got very high taxes given our status relative to our African peers for instance. Our tax to GDP ratio compares quite favorably with OECD countries except on the governance metrics.”

In her discerning analysis, Dr. Blackmore unveils the fissures in governance structures and the glaring deficit in accountability within the tax ecosystem. With an impassioned plea underscored by scholarly rigor, she emphasizes the imperative of fostering an institutional milieu conducive to the practice of tax bargaining. She contends that nurturing an environment characterized by dialogue, dissent, and collaboration is not merely a nicety but a sine qua non within the tapestry of a constitutional democracy.

At its essence, Dr. Blackmore’s advocacy heralds a paradigmatic shift in the approach to tax administration, advocating for a departure from traditional enforcement-centric models towards a more participatory ethos. This novel approach, she argues, holds the promise of ameliorating existing governance lacunae and fostering a culture of compliance underpinned by mutual understanding and cooperation.

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