Sars gets AI to sniff out tax evaders

The South African Revenue Service (Sars) will be introducing a new system that uses artificial intelligence and self-learning computers for tax revenue collection and to crack down on tax dodgers.

According to the South African Payroll Association (Sapa), the shift towards more intelligent systems and processes was not only welcomed but long overdue.

“The Sapa commends Sars for redoubling its efforts to build a modern revenue authority,” said Jethro Malapane, executive committee member of Sapa.

He said even though Sars had not given detailed information about the system or the costs associated with it, its work would be informed by data-driven insights, self-learning computers, artificial intelligence and interconnectivity of people and devices.

Malapane said from a Sars point of view, this system will assist in providing clarity and certainty of tax obligations, making it easier for taxpayers and traders to comply, detecting those who do not comply and making it hard and costly for them.

“Meaning the main objective is to embark on noncomplying taxpayers, which we know that some of the reasons why some taxpayers are not complying is the unclear processes,” he explained.

Malapane said the only potential problem he foresees with Sars’ steps to becoming a more technology-enabled organisation is how easy to use the new systems will be.

“E-Filing was launched 20 years ago, but there are still many people who hire financial professionals to do their submissions because they find it confusing,” he said.

According to Sars, they were also in the process of modernising its systems to provide digital and streamlined services and rebuild public trust in the tax and customs administration.

Sars commissioner Edward Kieswetter said in a statement this month he had also been on an extensive consultation campaign with staff which had redefined Sars’ strategic objectives.

“This has created a need for a high-level internal and external recruitment drive to attract highly talented professionals and executives to bring Sars up to speed with advances in big data and artificial intelligence in the tax and customs environment,” said Kieswetter.

He said their vision for 2024 was to build a smart modern Sars with unquestionable integrity, trusted by government and the general public.

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