Sars thanks compliant taxpayers, while warning those who’ve failed to comply

Sars has had a successful tax season this year, with seven million taxpayers having filed their returns.

The 2023 tax season for non-provisional taxpayers recently concluded on 23 October, after commencing on 7 July.

According to Sars, the compliance rate increased by a million this year, up from six million in 2022.

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All thanks to the Internet

Sars’ digital efforts seem to have paid off as 88% of returns were made using eFiling and MobiApp platforms.

Furthermore, the revenue collector reported that 93% of returns were processed in just 5 seconds while 79% of refunds were processed within 72 hours. As a result, more than R29 billion worth of refunds had already been paid out.

Despite previous allegations of taxpayers being auto-assessed without prior notification – which Sars denied, the tax collection agency recently announced that its auto-assessment platform had continued to gain traction.

According to Sars, four million taxpayers have already received assessments in 2023, up from three million in 2022.

The revenue collection body attributed its improved services to rapid developments in data science, algorithms, machine learning and the various third-party data sources.

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Non-compliant taxpayers

Despite the increased compliance rate, Sars has identified groups of non-compliant taxpayers thorough its digital platforms.

“We do remain concerned about non-compliant taxpayers who have not submitted a return as required,” Sars said in a statement.  

According to revenue collector, four groups of taxpayers failed to comply in the recent tax season.

• Registered taxpayers who haven’t, for whatever reason, filed a return.
• Taxpayers who haven’t made payments due.
• Persons who aren’t registered as tax payers despite being economically active.
• Taxpayers who were in the past not required to file, but receive income from employment, investments, rental or other income; certain taxpayers may also have received shares or have active business interests that push them above the income threshold – which means they have to file.

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Beware of the law

“Non-compliant taxpayers are reminded that they do face [possible] legal consequences for failing to register, file a return and/or make payments where possible,” said Sars.

Furthermore, the revenue collection agency urged non-compliant taxpayers to get their affairs in order as a matter of urgency.

Sars encouraged those who haven’t filed their returns to approach a Voluntary Disclosure Unit (VDP) and not wait for the tax collector to contact them.

“If such a taxpayer’s VDP application reached Sars after Sars has contacted them, the VDP option falls away and their applications will not be accepted.”

Cautioning against the consequences of non-compliance, Sars said it would act sternly when dealing with taxpayers who wilfully and intentionally ignore their legal obligations.

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Thank you…to those who complied

While expressing appreciation for increased compliance rate, Sars Commissioner Edward Kieswetter noted that some taxpayers had been non-compliant by making false declarations, plainly ignoring their legal obligations.

“Those who engage in such conduct must know that what they’re doing is in fact not only a civil offence, but also a criminal offence, which will be met with the proportionate response,” Kieswetter said.

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