SARS Voluntary Disclosure Programme Brings in R3.3 Billion
The Voluntary Disclosure Programme (VDP) of South African Revenue Service (SARS) has proven a significant success, driving R3.3 billion in tax collections during the 2023/24 financial year. This initiative provides taxpayers with a structured opportunity to disclose previously undeclared tax liabilities, helping them avoid severe penalties—except in cases of gross negligence or intentional evasion.
Crypto Assets Holders Cannot Hide
As SARS intensifies its focus on crypto assets, the VDP is now more critical than ever. With over 5.8 million South Africans holding cryptocurrencies, SARS is targeting undeclared crypto gains as part of its broader compliance mandate. Leveraging advanced technology, SARS Commissioner Edward Kieswetter highlighted the agency’s ability to detect non-compliance, making the VDP a valuable pathway for taxpayers to regularize their affairs before stricter enforcement measures, such as audits and legal action, come into play.
How to Benefit from VDP?
Taxpayers can benefit from the VDP by:
Avoiding penalties tied to non-compliance.
Gaining clarity and closure on tax matters, particularly for complex areas like crypto assets.
Avoiding "hard enforcement" actions, which can be costly and time-consuming.
What Should Taxpayers Do?
Taxpayers must act proactively as eligibility for the VDP is lost if SARS initiates an audit before the taxpayer applies.
Consulting a tax expert ensures privileged discussions to make complete and accurate disclosures.
A Balanced Approach to Enforcement
SARS continues to uphold its strategic goal of making non-compliance "hard and costly" while promoting transparency and fairness. With tools like the VDP, taxpayers have a chance to correct past mistakes and contribute to South Africa’s fiscal health. Don’t wait—ensure compliance today to avoid costly consequences tomorrow.
