SARS Steps Up Its Game - Its All About Collections
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SARS has renewed its focus on collecting unpaid taxes—potentially up to R500 billion in recoverable revenue. While the total “tax gap” may be as high as R800 billion, SARS believes at least R500 billion is realistically collectable through tighter compliance.
Backed by an extra R3.5 billion in funding from Treasury, SARS is ramping up audits and compliance checks, with specific focus on:
High-wealth individuals showing economic activity but not filing tax returns. SARS can pick up movements on bank accounts and identify undeclared income.
Businesses in sectors with high levels of non-compliance—like mining, construction, agriculture, and clothing
Cryptocurrency users and online sellers (e.g., Temu and Shein buyers/sellers)
International tax risks (e.g., base erosion, profit shifting, trade mispricing)
So far, over 54,000 audits have been launched against flagged individuals, with R1.36 billion already collected. SARS is also chasing 36,000 unregistered taxpayers with a potential R30 billion in assessments.
⚖️ SARS' Strong Collection Powers: No Room to Hide
It’s important to remember that SARS has powerful legal tools at its disposal, and ignoring tax notices can lead to serious consequences—even if you're in the right. The law allows SARS to act harshly to protect public finances. Even innocent taxpayers can get caught up in this—so it’s vital to act fast, know your rights, and follow due process. SARS has access to taxpayers bank accounts and able to withdraw the amounts owed, can issue preservation orders, repatriate foreign assets, and restrict taxpayer travel where necessary to recover tax debts.
🔎What This Means for Accountants:
Now is the time to review clients’ compliance—especially those in flagged industries or high-net-worth brackets. Ensure tax registrations, declarations, and supporting documentation are in order to avoid audits or penalties.
Always check your SARS eFiling profile for a current statement of account. Even an error showing outstanding debt must be addressed—silence is risky.
Filing an objection does not stop SARS from collecting. You must submit a separate “suspension of payment” request, properly motivated.
Even if SARS made the error, or an official promises it will be fixed, it means nothing unless legal steps are taken. The SARS collections department operates independently and will pursue any debts if no suspension is in place.
✅Bottom line: SARS is becoming more aggressive, well-funded, and data-driven. Accountants and tax practitioners should be proactive to keep clients on the right side of tax law.
