MAVERICK BUSINESS ANALYSIS: South Africa’s enterprise sector critically ill

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MAVERICK BUSINESS ANALYSIS: South Africa’s enterprise sector critically ill By Johannes Wessels

The formal South African Enterprise Sector is critically ill. Were the company tax returns of the 768,000 companies combined and submitted as that of a single entity there would not have been any Company Income Tax payable to SARS for three consecutive tax years.

If the CIT collected in 2007 had increased annually at the CPI inflation rate, Treasury would have received an additional R52.8-billion on top of the R198.8-billion it did receive in CIT in 2016. Assessed taxable company income and CIT lagged significantly against inflation. Only 0.75% of the firms with taxable turnover above R100-million pay 85% of all company income tax into SARS coffers.

A public sector that had metamorphosed from a facilitator of services and infrastructure into a parasite not delivering proper education, proper law enforcement and reliable infrastructure.

 

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