SARS continues to warn taxpayers that they are targeting non-compliant taxpayers, and their information-gathering tools become stronger and stronger each tax period. SARS has recently made headlines with unexpected developments in its crackdown efforts.

Some recent headlines:

“SARS collects an unexpected extra R10bn”

“As SARS crackdowns intensify, SA’s tax take surprises on the upside”

“SARS to target professional enablers’ of organised crime”

“SARS maintains clampdown on rich, as 14 partners at Santon law firm understated tax”

“SARS knows what’s happening in your bank account”

“Celeb Chef Lusizo Mvula Henna weeps as he is handed 10-year sentence for defrauding SARS of R5m”

Intensification Of Crackdowns

Despite the ongoing intensification of crackdowns, SARS has managed to collect a surprising additional R10 billion in tax revenue. This unexpected windfall comes amidst SARS’s focused efforts to target professional enablers of tax evasion and organized crime. The authority has been steadfast in its pursuit of those who aid or engage in illicit financial activities, including professionals in the legal and financial sectors.

Notable Developments

In a notable development, it was revealed that 14 partners at a prominent Sandton law firm had understated their taxes, underscoring SARS’s unwavering stance on holding even the wealthiest accountable for their tax obligations. SARS Commissioner, Edward Kieswetter reported that during targeted audits, they collected R850 million from lifestyle or luxury car audits. Long gone are the days when SARS relied on you, the taxpayer, to provide transparency regarding your financial affairs. With the tightening reporting of third-party information and reporting, it has become easier for SARS to reconcile unreported amounts in tax submissions.

 

 

Warning signs from SARS

 

 

 

 

 

 

Warning signs from SARS

 

 

PW Harvey & Co is committed to keeping taxpayers compliant and up to date at SARS. We urge taxpayers to submit all information to their tax practitioners, as the onus is on the taxpayer to disclose all income. If you are unsure as to what income should be declared or not, feel free to engage with us.

Amidst the crackdowns by SARS, we urge individuals who have not disclosed their income to come forward through the Voluntary Disclosure Programme (VDP) route. This proactive approach provides a chance for non-compliant taxpayers to rectify their tax affairs while mitigating potential penalties.

 

 

 

 

 

As SARS maintains its clampdown on tax evasion and non-disclosure, the message is clear: adherence to tax obligations is non-negotiable, and all individuals and entities must fulfil their responsibilities to avoid facing consequences, which include tax practitioners remaining compliant with their personal affairs.

Please contact the PW Harvey & Co Tax Department should you have any queries regarding this at tax@pwharvey.co.za