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#YourTaxMatters: Let us work together to fight illicit trade

In 2021, Business Leadership South Africa (BLSA) estimated that the country loses more than R250 million worth of tax revenue a day due to illicit economic activity.

This has a knock-on effect on job creation and service provision. (OPINION | Siseko Maposa: Rampant illicit trade in South Africa is indicative of a failing state | News24)

The South African Revenue Service has developed a number of strategic objectives, including “to detect taxpayers and traders who do not comply and make non-compliance hard and costly.” The motive behind this objective is to restrain revenue leakages stemming from illegal practises in the illicit economy.

SARS and the country’s fiscus have experienced huge losses in revenue due to, among other factors, a global surge in illicit commodities and undervalued imports of clothing and textiles, which continue to damage the South African economy.

These illicit activities are part of a covert economy which operates outside the rules and protocols of the country. They extend to organised crime, which is driving the trade in illicit products.

Over the last few years, SARS has continued to make efforts to combat this challenge and thus alleviate such illicit and non-compliant activities by means of improved policies, coupled with enforcement.

However, this cannot succeed without the support of the public who, ultimately, are the market for such crimes.

SARS has thus embarked on an awareness campaign through a series of online webinars, such as a recent one on Illicit Trade and Counterfeit Procedures, which is available on the SARS YouTube Channel.

SARS is deeply concerned about these tax crimes and wishes to reassure the public that we are taking the necessary measures to clamp down on them.  In fact, one of the pillars of SARS’ Vision 2024 is to build a smart modern SARS, with unquestionable integrity, trusted by government, the public and our international peers.

Thus, we wish to appeal to the South African public to work with us in the fight against illicit trade. You can do this by refusing to buy counterfeit goods or contraband cigarettes, reporting poaching incidents to SARS, the police and/or the Department of Environmental Affairs; and reporting the informal trade in precious stones, such as diamonds, to SARS and the police.

Illicit trade has a negative impact on businesses and our economy as a whole, which includes the following:

  • Lowers revenue income for the fiscus
  • Limits potential to grow and create jobs
  • Closure of legitimate shops due to loss of clients
  • Loss of investment capital
  • Creates social tension
  • Undermines Government’s efforts to curb corruption

We all have to work together to fight illicit trade to grow our economy. SARS is determined to combat tax crimes in South Africa to reduce the huge losses to the national fiscus every year.

Taxpayers, traders and the public are urged to utilise crime-reporting tools available on the SARS website (they can remain anonymous when reporting these crimes).

Regional News

 The SARS Gauteng region has set up a number of “pop-up branches” and points of service to assist taxpayers outside of SARS branches.  These include:

  • Greenstone Mall, Edenvale: Operating hours Monday to Friday10:00 to 16:00, Saturdays 9:00 to 14:00 from 1 September 2022
  • Alberton City Mall, New Redruth, Alberton: Operating hours 9:00 to 16:00 weekdays from 29 August 2022
  • The Glen Shopping Centre, Oakdene: Operating hours Monday to Friday 9:00 to 15:00
  • Heidelberg Mall, Heidelberg: Fridays from 9:00 to 15:00
  • Carletonville Civic Centre: Wednesdays to Fridays at 9:00am to 15:00 hours

For more info on SARS’ outreach activities, click HERE.

The following tax services will be offered:

  • Filing of Returns
  • Updating of contact details
  • Migration to eFiling and Mobi App
  • General tax season enquiries

To keep yourself updated about tax matters:

  • Check the SARS website for current Filing Season info
  • Visit the SARS You Tube channel

ALSO READ: #YourTaxMatters: Auto Assessment – SARS has made it easier for you to file

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