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This study critically examines the discretionary powers conferred on the Commissioner for the South African Revenue Service (SARS) under the Value-Added Tax (VAT) Act, focusing specifically on Section 72. Using a comparative analysis with the United Kingdom’s VAT framework, the research examines how discretion is shaped by principles of fairness, certainty, simplicity, and transparency. The findings show that South Africa confers broader and less regulated powers than the UK, where discretion is narrowly administrative, formally codified, and subject to stronger transparency and judicial oversight. These differences have significant implications for legal certainty, taxpayer rights, and compliance in South Africa. The study contributes by highlighting the risks of over-broad discretion in tax administration and recommends adopting a more structured and transparent approach, including the publication of binding regulations and clearer criteria for decision-making. Such reforms would align South Africa’s VAT system more closely with constitutional standards and best international practices.

This paper examines the current international taxation framework and its implications for African economies. The analysis highlights the economic consequences of the existing allocation of taxing rights, which often results in reduced revenue generation and exacerbated economic inequalities. The paper underscores the critical roles played by the African Union (AU) and the African Tax Administration Forum (ATAF) in advocating for fairer taxing rights for African countries. It also delves into potential technological and administrative solutions to enhance tax collection efficiency and effectiveness. A qualitative systematic literature review approach was adopted in the study. The findings reveal that the current allocation of taxing rights disproportionately favours residence countries, hindering African nation's ability to generate adequate tax revenues. This, in turn, impedes investments in essential public services and infrastructure. The paper emphasises the importance of equitable tax reforms, advocating for a reallocation of taxing rights that ensures a fairer distribution of tax revenues. Strengthening the capacities of tax administrations and investing in advanced technology for tax collection are also identified as crucial steps to improve the efficiency and fairness of the tax system. Key recommendations for policymakers include actively participating in international tax reform initiatives, advocating for source-based taxation, and fostering regional co-operation to enhance tax governance. Specific policy reforms suggested include implementing digital services taxes, enforcing anti-avoidance rules, and improving transfer pricing regulations. The paper concludes by calling for further research on the impact of specific tax policy reforms, the effectiveness of technological solutions, and the role of regional bodies in promoting equitable tax practices. These insights aim to contribute to the ongoing discourse on international taxation and support sustainable economic development in Africa.