What's up with SARS mandatory lifestyle audits?

By
Silindile Phakathi
Tax Manager
April 17, 2023
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As the Public Service Summit commenced with public service workers chanting about their distrust in their government, one of the many criticisms is the blatant corruption within their sector that compulsory lifestyle audits seek to remedy. 


In 2017, Transparency International's Corruption Perception Index ranked South Africa 71st out of 180 countries, leaving the nation with a high score of 43 out of 100. 


In light of centuries of corruption and the government already implementing several measures to eradicate corruption, SARS has also taken steps to tackle one of the nation's biggest concerns. 


So, what's up with compulsory lifestyle audits?


Compulsory lifestyle audits were introduced in April last year, and they were being implemented in the public service space. 


By the end of January 2022, national and provincial departments reported to the Department of Public Service and Administration (DPSA) that they had either completed lifestyle audits or were in the process of the audits.


Lifestyle audits are only one part of the broader drive from the government to professionalise, modernise and optimise public services. Lifestyle audits will not only probe unexplained wealth but will also detect conflicts of interest that impact the productivity of public service employees and service delivery.


Although lifestyle audits are a mechanism or tool to address corruption, in essence, it aims to restore ethics to be at the centre of the public service.


Corruption undermines democracy and the rule of law, leading to human rights violations, distorted markets, and erosion of citizens' quality of life. 


Considering this concern, the public service embarked on a process to implement lifestyle audits for national and provincial employees and do it within an ethics management framework.


Lifestyle audits are not a punitive measure. However, we cannot deny that we have corrupt public service employees. If a public service employee is involved in criminal conduct, they must know that they will be detected through the lifestyle audit process. Steps will be taken against them sooner or later.


We cannot professionalise the public service, improve service delivery or have economic growth if we condone unethical conduct and ignore corrupt behaviour.


The Public Service Regulations had to be reviewed to prepare for the effective implementation of lifestyle audits. This included adopting the 'Ethics Officer' concept and that of 'Ethics Committee'. 


The revenue collection outcome will improve by maintaining a system that holds ethics at the core of all values.