Issued by: Ministry of Finance
Wednesday 5 March 1997
1. South Africa's Deputy President, Thabo Mbeki, and senior NAFCOC Executive Council members, led by their President Joe Hlongwane, held a fruitful meeting on Friday 28 February in Pretoria. The discussions centred on the government's tax relief programme and ways of enhancing black business participation in the economic life of the country.
2. The meeting recognised the urgent need for the South African Revenue Services (SARS) to conduct a widespread, consistent tax education campaign. Such a campaign should not only deal with the benefits to society that result from all citizens paying tax, including making resources available for education, health care etc, but also and the rights and obligations of tax payers. Furthermore, SARS needs to communicate how it can assist emerging black business through greater accessibility and the simplification of tax returns. This requires a greater outreach by SARS through providing a financial service to all South Africans.
3. The meeting reconfirmed the commitment by Nafcoc to work with government to help educate black business on the new opportunities available, particularly through government's procurement and SMEE policies. This would be accompanied by Nafcoc playing a significant role in enhancing tax morality, including by creating greater awareness among Nafcoc members of both their rights and obligations as tax payers.
4. The meeting agreed that while there could be no write-off of capital, the pre-1994 tax obligations would be dealt with sympathetically on a case-by-case basis by SARS, including examining original assessments where necessary.
5. As the discussions between Nafcoc and SARS have been conducted throughout the months of the tax relief campaign, and the procedures were agreed to before the midnight deadline on 28 February 1997, the thousands of applications for tax relief being submitted through Nafcoc will be accepted by SARS. They will be processed together with the thousands of other applications received in the final rush on 28 February at Revenue offices throughout the country.
6. SARS and Nafcoc will continue to hold discussions on the ways to develop and expand a broad-based education campaign.
7. The Minister of Finance will ensure attention is paid to further transform SARS into a client-oriented financial service, there to assist tax payers enhance their rights and help them to meet their obligations in a fair, professional manner.
8. Deputy President Thabo Mbeki reiterated government's commitment to ensure that black business played an increasingly vibrant, expanding role in the economy. Regular meetings with representatives of black business would be held to continually address this matter.