Once an inefficient, cumbersome and inaccessible body, the South African Revenue Service (Sars) has changed its image completely. Not only has it clamped down on tax avoidance; it has probably never been as easy for South Africans to understand those darn complex tax forms.

The turnaround is largely due to one man: Sars commissioner Pravin Gordhan... a man who has made Finance Minister Trevor Manuel’s life somewhat easier, in spite of creating some controversy during his tenure at Sars.

Uneasy tax dodgers

Year after year Sars collects more tax than is budgeted for: the tax overrun for the current financial year is expected to come to some R25-billion above the initial estimates of R464-billion.

Granted, much of the increase can be attributed to the higher personal incomes that we as South Africans are receiving, as well as improved corporate earnings.

Yet under Gordhan’s leadership, tax dodgers have probably never felt as uneasy as they currently do. Late last year, Sars warned that some 500 of the highest earners in South Africa were under the spotlight to ensure they weren’t living outside the tax net.

Gordhan has also encouraged a change in mindset regarding paying taxes: “Crime is crime. You can’t distinguish between those who stab and engage in heists and those who have tax heists as their primary activity,” he said at the time.

Electronic filing

As for making things easier for tax payers, Sars last year introduced its electronic filing facility, which allows South Africans to complete their income tax returns via the website, while a dedicated call centre was created to assist those who chose to go the online route.

The chief tax collector, however, always wanted to be a doctor, and used to work as a pharmacist at the King Edward VIII hospital in Durban between 1974 to 1981. He was fired from the position after being detained under the Internal Security Act.

His involvement in politics has taken him from being the leader of the National Indian Congress and the United Democratic Front, to a senior negotiator — from 1991 to 1994 — in South Africa’s transition. During this time he chaired both Codesa’s (Convention for a Democratic South Africa) Management Committee, as well as the Transitional Executive Council, both key structures in SA’s constitutional transition.

Drafting the new constitution

Subsequent to 1994, he worked as an ANC MP — playing a key role in drafting the new constitution, according to the Sars website.

In 1998 he became deputy commissioner at Sars and just more than a year later, in November 1999 he was appointed commissioner of the tax body.

Yet the commissioner's reign has not been without controversy: one big blot that has stained Sars, and Gordhan’s reputation relates to Brett Kebble and his missing millions.

Gordhan under fire

Since 2005, Sars has come under pressure on how Kebble managed to avoid paying tax from 1993 onwards — with the outstanding tax said to amount to hundreds of millions of rands.

Gordhan himself came under fire, amid reports in Noseweek in 2005 which suggested that Kebble may either have been bribing Sars, or alternatively was financially supporting amongst others Mo and Schabir Shaik, who had close relations with Gordhan. Not only was Gordhan seen as a mentor for the brothers, the commissioner's brother-in-law was said to have been employed by Schabir Shaik, who is currently serving 15 years in prison for corruption, Noseweek said.

The magazine added Gordhan was investigated in 2001 by the Scorpions for his involvement in the arms deal.

Severe response

However, nothing has come of this investigation, and the next time the commissioner will find himself in the spotlight, it’s likely to be when Manuel thanks him and his team during the 2007/2008 Budget speech for their effective tax collecting in the financial year.

Being the head of the country’s tax body can hardly make you as popular as, say, Manuel is, but Gordhan’s efficiency is not in doubt, and if you’re thinking about dodging taxes this year, you’d better be ready for a severe response.