SARS HOMES IN , IS IT TIME FOR VOLUNTARY DISCLOSURE ?
WITH SARS INTENSIFYING ITS COMPLIANCE SCRUTINY , WHETHER INTENTIONAL OR UNINTENTIONAL , FAILING TO ADHERE TO TAX LAWS CARRIES SEVERE CONSEQUENCES . WHILE MANY TAXPAYERS HAVE PREVIOUSLY EXPECTED MINOR REPERCUSSIONS SUCH AS FINES AND INTEREST CHARGED , A REVISED PROSECUTION STRATEGY , WITH THE ASSISTANCE OF THE HAWKS AND SAPS , HAS CLEARLY SHOWN THAT SARS HAS ALTERED THE LANDSCAPE . ALL INDICATIONS SUGGEST THAT THE TAX AUTHORITY , FACING MOUNTING PRESSURE ON TAX COLLECTIONS AND PERSISTENT NON-COMPLIANCE , ACTIVELY PURSUES THE ARREST AND PROSECUTION OF TAXPAYERS WHO FAIL TO DISCLOSE THEIR TAXABLE INCOME ACCURATELY .
THE FRUITS OF SARS ' EFFORTS ARE EVIDENT IN THE RECORD TAX COLLECTION FIGURES . FOR THE FISCAL YEAR TO THE END OF MARCH , SARS COLLECTED A GROSS TAX REVENUE OF R2.155 TRILLION – R10 BILLION MORE THAN THE TREASURY ' S LAST ESTIMATE IN FEBRUARY . THE 2023 / 24 TAX TAKE WAS R52 BILLION MORE THAN THE PREVIOUS YEAR , THANKS TO MORE THAN 8 % GROWTH IN VAT ( R448 BILLION ) AND PERSONAL INCOME TAX ( R651 BILLION ). THESE FIGURES INDICATE A SIGNIFICANT INCREASE IN TAX COMPLIANCE AND A CLAMPDOWN ON OUTSTANDING PERSONAL INCOME TAX , WITH SARS MAKING A CONCERTED EFFORT TO UNCOVER INDIVIDUAL CITIZENS WHO ARE AVOIDING THEIR TAX OBLIGATIONS OR NOT SUBMITTING CORRECTLY UNDER THE WILFUL NON-COMPLIANCE CATEGORY .
ACCORDING TO DANIELLE LUWES , TAX DIRECTOR AT A SPECIALIST TAX FIRM , HOBBS SINCLAIR ADVISORY , THE REVENUE OFFICE RELIES ON PERSONAL INFORMATION , ARTIFICIAL INTELLIGENCE , AND MACHINE LEARNING ALGORITHMS TO TRACK ACTIVITY AND RED FLAG NON-COMPLIANT TAXPAYERS . LUWES WARNS THAT SARS WILL PICK UP FLIGHT ACTIVITY ( SUCH AS FREQUENT INTERNATIONAL TRAVEL ) AND LUXURY PURCHASES ( SUCH AS HIGH-END VEHICLES OR LUXURY VACATIONS ) AND CONDUCT A LUXURY AUDIT TO ASCERTAIN IF AN INDIVIDUAL EXHIBITS A LIFESTYLE THAT DOES NOT MATCH THE TAX RETURN . “ THE SOUTH AFRICAN REVENUE SERVICE , UNDER THE LEADERSHIP OF COMMISSIONER KIESWETTER , IS A WORLD-CLASS ORGANISATION . THROUGH ITS SPECIALIST HIGH WEALTH INDIVIDUAL UNIT AND THE SPECIALISED AUDIT UNIT , SARS HAS MANAGED TO ACHIEVE RECORD TAX REVENUE ,” SAYS VAN LUWES . “ WE HAVE SEEN IN RECENT REPORTS OF INDIVIDUALS BEING ARRESTED AND IMPRISONED WHICH IS A SERIOUS WARNING THAT BEING NON-COMPLIANT IS A VERY DANGEROUS PLACE TO BE ,” SHE WARNED .
SOUTH AFRICA ' S VOLUNTARY DISCLOSURE PROGRAMME
SARS PROVIDES A VOLUNTARY DISCLOSURE PROGRAMME ( VDP ), OFFERING ELIGIBLE INDIVIDUALS , COMPANIES , OR TRUSTS THE OPPORTUNITY TO VOLUNTARILY DISCLOSE AND RESOLVE THEIR TAX MATTERS . TO BE ELIGIBLE FOR THE VDP , TAXPAYERS MUST MEET CERTAIN CRITERIA , SUCH AS NOT BEING AWARE OF A PENDING AUDIT OR INVESTIGATION , NOT HAVING RECEIVED A REQUEST FOR INFORMATION FROM SARS , AND NOT HAVING BEEN INFORMED OF AN AUDIT OR INVESTIGATION BY SARS . LUWES STRONGLY ADVISES TAXPAYERS FACING TAX DEFAULTS TO CONSIDER USING THE VDP