SARS Enhances Compliance Efforts with Expert Tax Consulting Panel

The South African Revenue Service (SARS) has taken a significant step towards enforcing its zero-tolerance policy against non-compliance by initiating a new tender to appoint a panel of specialist tax consulting firms for a five-year period, starting 26 August 2024. This move will enable SARS to leverage the expertise of the country’s top tax professionals to effectively tackle tax evasion, handle complex tax issues, and enhance overall tax compliance.

The initiative, outlined in a tender involves recruiting up to 88 tax specialists per panel member, from junior to senior levels, covering a wide range of tax types and compliance matters. This strategic enhancement will boost SARS’s capacity to conduct forensic audits, understand sophisticated tax avoidance schemes, and undertake complex corporate restructurings.

Additionally, the appointed panel will engage directly with taxpayers and traders through various communication methods, including phone calls, written correspondence, and virtual meetings. They will also have the authority to perform tax assessments, conduct audits, and collect due taxes, aligning with SARS’s mission to clamp down on tax non-compliance.

Taxpayers are advised to ensure their compliance is up to standard, potentially seeking independent reviews from skilled tax firms. This initiative reflects a global trend where integrating private sector expertise is deemed essential for effective tax administration, as seen in practices from the United States to Mauritius.

This strategic move by SARS underscores a comprehensive approach to enhancing tax compliance and ensuring the integrity of South Africa’s tax system.