Mark Kingon has been appointed the new acting commissioner for the South African Revenue Service (SARS), the Treasury announced on Tuesday morning.
Kingon was the acting chief officer of business and individual taxes division at SARS.
His appointment follows the immediate suspension of SARS Commissioner Tom Moyane on Monday night by President Cyril Ramaphosa after he declined to resign.
His was suspended pending the disciplinary hearing.
President Ramaphosa said it was in the public interest to restore the credibility of SARS without delay.
In a statement on Monday, the Presidency said the decision to suspend Moyane follows a meeting in which President Ramaphosa informed the Commissioner he had lost trust in his capacity to lead SARS and offered him a chance to leave with immediate effect.
“Developments at SARS under your leadership have resulted in a deterioration in public confidence in the institution and in public finances being compromised. For the sake of the country and the economy, this situation cannot continue or to worsen,” President Ramaphosa said in a letter to Moyane.
He said concern was brought up about the way in which Moyane dealt with the matter of SARS Manager Corporate and Individual tax, Jonas Makwakwa.
His treatment of the report given to him by the Financial Intelligence Center (FIC), and his inability to report this to the Minister of Finance.
“Management of VAT refunds, which had brought the SARS into serious disrepute and jeopardised the integrity of the SARS as a collector of revenue and affected tax morality among taxpayers,” said the Presidency.
President Ramaphosa demonstrated that as SARS Commissioner Moyane holds a high position of trust in the management of the country’s public finances
“It was, therefore, necessary to act and immediately to protect the institution and place it on a path to stability and recovery,” said Ramaphosa.
DA Shadow Deputy Minister of Finance Alf Lees said in a statement while his party welcomes the resignation of Makwakwa and the suspension of Moyane believes that more should be done to restore the integrity of SARS.
Lees said the new SARS Commissioner must take urgent steps to investigate the circumstances surrounding the management of SARS, including the suspicious Makwakwa transactions identified by the FIC and special treatment is given to Gupta companies on the R70 million VAT refund and to assess tax payable by former President Jacob Zuma.