1. ASSESSMENT

2. Assessment Improved and streamlined processes Improved turnaround times No backlogs in the assessment of returns Reducing outstanding returns Quicker refunds Improve payment processes including the ability to pay through banks Improved assessing skills

3. Assessment: Achievements Returns Processed IT4.1 million VAT2.98 million PAYE2.2 million Increase in register IT9% VAT6% PAYE8.1% PAYE Reconciliations 96,6% finalised of Reconciliations received Improved debt equalisation process: Value of refunds equalised to debt = R1,65 billion. Reduction of R10,3 million or 25% in VAT refunds paid. Successful Filing Campaign – 11.76% increase in returns received Call center upgrade and implementation Increase in E-Filing

4. Assessment : KPA’s 1.To effectively manage and administer the registration process 2.To effectively manage and administer the filing process 3.To ensure quality and timeous assessing / processing 4.To ensure timely & accurate payment / refunds process 5.To ensure efficient document management 6.To optimise Revenue collection

5. ENFORCEMENT

6. Enforcement The tax and customs enforcement program - increased revenue from audits and successful criminal prosecutions. Has enhanced government’s anti-crime strategies. SARS has increased the number of audits performed; significantly increased the skills; More effectively combating improper tax planning, Customs transgressions and outright fraud.

7. Enforcement: Overview Results 2003 / 2004 Number of staff Number of cases attended to Revenue implications Audit1 27058 054R 20,4 bil assessments raised Criminal Investigations 1441 430 Admin cases completed 120 Serious cases Total: 6 258 (1 558 convictions) R 3,6 bil assessments raised Collections Debt Outstanding returns 812 483 2 876 486 (outstanding returns collected) R 22,6 bil collected TOTAL2 709

8. Prosecution Results DESCRIPTION:NATIONAL TOTALS FOR 2003/2004 Actual finesR 4,543,460.00 Imprisonment (years)84 Suspended finesR 75,000.00 Suspended imprisonment (years)107 Repayment to SARSR 39,593,471.00 Caution (number)1 Correctional service (years)3 OtherProperty forfeited to SARS - value R 3 million

9. Enforcement : KPA’s 1.To develop a strategy to enforce the law amongst those that are actively non-compliant 2.To develop a strategy for control and deterrence 3.To develop a comprehensive Risk analysis 4.To develop and publish a Compliance Plan for 2005/06 5.To ensure optimal Revenue collection 6.To implement an audit programme 7.To carry-out visible compliance actions 8.To conduct Criminal investigation: 9.To effectively manage Debt

10. CUSTOMS

11. Customs Customs’ role is : firstly the protection of the South African economy and security of its people, facilitation of trade. Customs’ staff has grown from about 800 to over 2 400 over past 3 years Now better able to fulfill its mandate

12. Customs: Achievements Container Security Initiative Bilateral agreement with USA customs in the fight against international terrorism and economic crimes ICRAS Integrated Customs Risk Analysis Solution designed to improve risk profiling E-learning Use of interactive multi-media, on-line learning facility, which is an automated training tool Electronic Permit system Electronic control of permits and certificates issued by DTI on imports and exports Regional initiatives Piloting of a SADC single administrative document implementation of one-stop border concept Development of regional transit system

13. Customs: KPA’s 1. To develop, implement and maintain a customs control and facilitation strategy 2. To ensure effective border control 3. To effectively manage and administer the customs processes in order to facilitate trade 4. To meet annual Revenue targets 5. To carry-out visible anti-smuggling actions (counterfeit, drugs etc)

14. Excise: KPA’s 1.To build and maintain an effective and dedicated excise unit: Unit fully established by 30 September 2005 2.To develop, implement and maintain an excise strategy 3.To ensure timely and accurate service 4.To effectively manage and administer the excise processes 5.To implement an audit programme 6.To conduct effective excise control actions 7.To meet annual Revenue targets 8.To carry-out visible compliance actions

15. LAW ADMINISTRATION

16. Achievements: Law Admin Legislation: Exchange Control Amnesty and Amendment of Taxation Laws Act, 2003. Revenue Laws Amendment Act, 2003. First draft of Tax Administration Bill for internal comment. First draft of Customs policy document - lead to redraft of customs law International Treaties 6 new DTA’s up to translation stage with Brazil, Namibia, Spain, Sri Lanka, Swaziland and Zimbabwe. Renegotiation with Malaysia, Mozambique, Qatar and Tanzania. Second round with Cuba completed but text not agreed. 4 Customs Treaties ( Iran, Malawi, Turkey and Zimbabwe) 2 VAT treaties - Namibia and Botswana

17. Law Administration: KPA’s 1.To conduct research and advise on tax and customs policy 2.To draft clear and precise tax and customs legislation 3.To develop and Maintain a Tax & Customs treaty framework 4.To Ensure uniform & correct interpretation of the tax laws 5.To develop and maintain knowledge database 6.Provide taxpayers & business with a fair & efficient dispute resolution process 7.To undertake analysis and research to counteract tax avoidance