SARS's R7.69 Billion Haul: Is It Chasing Revenue or Just Chasing Tails?
When the taxman knocks, it better be for the right reasons.
South African taxpayers coughed up nearly R8 billion in May alone, as SARS intensifies its collection efforts. But practitioners and watchdogs are asking: At what cost?
According to National Treasury's latest data, SARS raked in R7.69 billion in outstanding tax debt last month, just shy of April's R7.89 billion. It's all part of a broader mission to close a gaping tax gap now ballooning to R800 billion up from R500 billion in 2022.
Here's the kicker: while SARS has more than 10,000 staff and recently roped in private debt collectors, the Tax Ombud, which handles taxpayer complaints has just 40 employees. That lopsided power dynamic is making some in the profession nervous.
Looking At the Numbers
Total tax debt: R535 billion
Undisputed tax debt: R422 billion
Disputed tax debt: R113 billion
May collections: R7.69 billion
What Does This Mean for Accountants and Taxpayers
More audits, more collections, and more disputes.
Less room for honest mistakes.
Heightened risk of compliant clients getting swept into enforcement sweeps.
SARS Commissioner Edward Kieswetter argues the extra R4 billion boost in funding over the next few years will help recover R20–R50 billion annually. Part of that arsenal? AI-powered tech sniffing out non-filers and ghost earners.
Case in point: SARS recently identified 115,506 economically active but non-filing taxpayers. Assessments worth R5.5 billion were issued, with R1.36 billion already collected. Another R30 billion in assessments against unregistered individuals is currently being disputed.
With the profession watching closely, and stronger enforcement is welcome, we need to stress the need for balance giving the Tax Ombud a fighting chance. If the system tips too far, it's not just evaders who feel the heat, it's the everyday accountant trying to keep clients compliant and off SARS's radar.
Your Next Move
Help clients get their tax affairs in order, fast.
Push back where SARS gets it wrong and use the Tax Ombud.
Stay vocal. CIBA is fighting for fairness but they need your stories.
Source: Moneyweb article
