South Africa’s tax authority (SARS) is committed to building a smarter and more efficient tax ecosystem through nine strategic objectives. Among these, Strategic Objective 8 focuses on “working with and through stakeholders to improve the tax ecosystem.” This collaborative approach emphasizes the role of partnerships in achieving a modern and effective tax administration system.

SARS Commissioner Edward Kieswetter highlights the importance of global cooperation. He notes that solid international networks and partnerships are vital for cross-border tax collaboration and fostering voluntary tax compliance. “This contributes to our vision of building a smart modern tax administration that can be trusted and admired. Participation in the Forum on Tax Administration (FTA), the pre-eminent forum on tax administration, is essential to making this vision a reality,” Kieswetter explained.

The FTA: A Hub for Global Tax Cooperation

Established in 2002, the FTA unites tax commissioners and officials from over 50 countries. Its Athens Plenary focused on “The Transformation of Tax Administration”, a theme that underscores the evolving needs of modern tax systems.

Kieswetter emphasized that transforming tax administration is crucial for enhancing domestic resource mobilization (DRM) and achieving the United Nations’ Sustainable Development Goals (SDGs). “Effective DRM through taxation is essential for financing public investments in infrastructure, education, and healthcare—key drivers of the SDGs,” Kieswetter remarked.

Taxation, particularly in developing countries, provides a sustainable and predictable source of public finance, making it indispensable for long-term economic growth and social development.

Key Topics at the Athens Plenary

The FTA Plenary included discussions on pivotal tax administration topics, such as:

• Transformation of tax administrations to meet the demands of a digital era.
• Leadership challenges and opportunities in fostering innovation.
• Digital transformation for seamless, real-time taxation processes.
• Tax certainty to ensure fairness and predictability for taxpayers.
• Implementation of the Global Minimum Tax, a critical global tax reform.
• Capacity building to strengthen tax administration systems globally.

The event also saw the launch of the FTA’s Gender Balance Maturity Model, showcasing a commitment to inclusivity within tax organizations.

Tackling Challenges in Tax Administration

Reflecting on the plenary, Kieswetter acknowledged the complexity of modern tax systems, which face growing challenges from tax and financial crimes. These issues cause significant revenue losses and impact social cohesion. However, SARS remains steadfast in its mission to develop a smart, modern tax and customs administration that can effectively support the nation’s democracy.

“As tax administrators, our mandate to mobilize domestic resources becomes increasingly critical. A well-functioning SARS ensures that our democracy remains funded and sustainable,” Kieswetter concluded.

SARS’ strategic vision and its active participation in global forums like the FTA underscore its commitment to fostering international collaboration, driving innovation, and supporting sustainable development through effective tax administration.

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