TAX REVOLT AND TAX RESISTANCE

 

I have been reading the words "tax revolt" and "tax resistance" more often recently.

 

What is a tax revolt?

 

The words tax revolt and tax resistance refers to a situation where taxpayers refuse to pay tax to send the government a message that they are not happy with the amount of taxes they have to pay or how the tax money is used.

 

Some factors causing a tax revolt is as follows:

  • taxpayers are reminded to do the right thing and pay their taxes, but government officials are constantly in the news for corruption, expensive parties and the like.
  • infrastructure is not maintained and falls apart. Roads are full of potholes. Hospitals are filthy and dysfunctional.
  • taxpayer's money is used to fund policies discriminating against them. Think apartheid.
  • education is not up to standard.
  •  a few taxpayers pay the majority of taxes and they are squeezed to the point where they eventually had enough and start resisting. 

 

In short. Politicians are not using tax money to uplift the country, but are using it for all types of other nonsense.     

 

There are generally three types of taxpayers.

 

  1. The ones that don't want to pay tax, no matter how well the tax money is used.

  2. Taxpayers who pay their taxes and will do so as long as the tax money is not abused.

  3. The ones that keep on paying their taxes even if the tax money is abused.    

 

When taxpayer types 2 and 3 start talking about a tax revolt, it is time for a government to ask serious questions whether they are serving the taxpayers well. 

 

When looking on Wikipedia for tax revolts the list is long. What is interesting is that it is normally a specific group withholding taxes instead of a whole population. There will always be a group or two that is not happy with something. We are different with different views and it is to be expected. 

 

But when a large group of people start talking about a revolt it is time to pay attention.

 

Can a tax revolt work in a country like South Africa?

 

Most things can work, but a better question is how likely is it to work.

 

Salaried employees are limited in what they can do as employers deduct taxes from them. They can withhold rates and taxes.

 

Businesses will need to work together.

 

How likely is it for the following to happen?   

 

  • a large amount of Vat vendors don't pay over Vat to SARS
  • a large amount of employers don't pay over PAYE to SARS
  • taxpayers ensure SARS don't have their correct bank details otherwise SARS will simply instruct banks to pay over the tax to them. Actual declared to SARS or estimated by SARS if returns are not submitted
  • banks ignore instructions to pay over amounts to SARS on behalf of taxpayers. 

 

We cannot help you to do anything illegal. 

 

We can however help you to claim what you are legally entitled to. 

 

To find out more please give us a call on 076 831 8514 or email us at tax@profittrackers.co.za