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OSHY SIGUBA

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Where tax goes up to 60 per cent, and everybody's happy paying it

11 Oct 2017, 10:33 Publicly Viewable

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Gwladys Fouché discovers that in Sweden high rates underpin a successful society:

"for most Swedes paying high taxes is a benefit, not a problem.Swedes' personal income tax can be as little as 29 per cent of their pay, but most people (anyone earning over £32,000) will pay between 49 and 60 per cent through a combination of local government and state income tax".

Which income will be taxed in Sweden?

  • Living in Sweden for at least 183 days in a 12-month period? You must as a main rule pay tax on your worldwide income in Sweden.
  • Living in Sweden for less than 183 days? You are not considered tax resident in Sweden.

Nima Sanandaji and Robert Gidehag(2015) argue that "Sweden is a nation with extraordinary high tax rates. The average worker not only pays 30 percent of her or his income in visible taxes, but, additionally, close to 30 percent in hidden taxes. The defenders of the punishing tax burden argue that it is needed to maintain Sweden’s generous welfare system. While this claim may seem reasonable on its surface, a deeper look suggests that it is based on flawed analysis".

Reference:https:1. //www.theguardian.com/money/2008/nov/16/sweden-tax-burden-welfare

                          2. http://europa.eu/youreurope/citizens/work/taxes/income-taxes-    abroad/sweden/index_en.htm        

                         3.http://www.newgeography.com/content/00814-swedens-taxes-the-hidden-costs-the-welfare-state

"SARS coughs up more than R62.1bn in refunds"

6 Oct 2017, 18:45 Publicly Viewable

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According to  Fin24, "SARS has already paid over R62.1bn in refunds to taxpayers by October 2, it said in a media release on Tuesday".

"The bulk of the refunds - R49.8bn - were VAT refunds, and the rest  - R12.3bn - personal income tax refunds.

SARS said that, by Monday, more than 2.7 million taxpayers had submitted their tax returns since tax season opened in July. This was an increase of 3.6% compared to the same period last year.

Most taxpayers still stood in queues to file their papers. 

While 49.28% of taxpayers used the online efiling, 50.9% filed at branches countrywide. SARS Commissioner Tom Moyane said in a statement that efiling was the quickest and easiest method to use.

In addition "last week SARS said it would intensify criminal proceedings against tax offenders from October.

The reason for the intended clampdown was an "increase in taxpayers not submitting their tax returns by the stipulated deadlines", and not settling their outstanding debt with the revenue collection agency, SARS said in a statement.

This was not limited to the current tax year, but included substantial non-compliance across previous tax years".

Reference : www.fin24.com/Economy/sars-coughs-up-more-than-r621bn-in-refunds-20171003