Makwetu remains adamant the payment of R3m in bonuses to tax executives represents a governance breach
The disagreement with the auditor-general has resulted in SARS not tabling its 2016-17 annual report in Parliament.
SARS joins a growing list of entities and departments that have either contested the auditor-general’s assessment of their annual financial statements or have not submitted their financials. These include South African Airways and the Passenger Rail Agency of SA.
Irregular expenditure at beleaguered state-owned enterprises nearly tripled in the past four years, with the number of entities getting qualified audit opinions with findings rising faster than the number of entities with clean audits.
Makwetu said that "within the SARS environment, they reward[ed] employees and it was an issue to say who approves"..
"When there is a breakdown, it is likely to come from previous years and entrenches itself.
"There is a governance step in terms of the payment of incentives and [it] was overlooked," he said.
SARS spokesman Sandile Memela said on Wednesday that the receiver of revenue was in discussion with the office of the auditor-general to resolve the disagreement over the bonuses.
"SARS wishes to confirm that it is engaged with the auditor-general’s legal representatives as part of efforts to resolve the matter," said Memela.