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Sars appoints leading firms to enhance tax compliance and close the tax gap
Sars appoints leading firms to enhance tax compliance and close the tax gap

IOL News

time05-07-2025

  • Business
  • IOL News

Sars appoints leading firms to enhance tax compliance and close the tax gap

Sars has appointed 32 leading firms to enhance tax compliance and tackle the R800 billion tax gap, signalling a strategic shift towards improved revenue collection. Image: File photo. The South African Revenue Service (Sars) has appointed 32 of the country's leading tax, forensic, risk management, and business advisory firms to a panel of experts who will bring specialised skills to enhance tax compliance and support Sars in achieving the 2025/26 revenue target of R1.986 trillion. The panel's expertise will be utilised across the three key areas of Forensic Investigations, Valuation Advice, and Debt Management. This development is a clear signal that Sars is intensifying its efforts to enhance efficient revenue collection, clamp down on tax non-compliance, and close the tax gap by leveraging the technical and legal expertise available in the private sector. Among the firms appointed to the panel are: Bowman Gilfillan BDO Tax Consulting South Africa PwC Sizwe Ntsaluba Gobodo Grant Thornton Advisory Services Deloitte Forvis Mazars Cliffe Dekker Hofmeyr Savage Jooste & Adams While Sars has published the list of successful and unsuccessful bidders on its website, it has not disclosed which firm will be responsible for which service area. Among the unsuccessful bidders are Nolands Capital Proprietary Limited, KNM Internal Audit and Forensics, and Dredin Consulting (Pty) Ltd. A strategic use of private sector expertise Sars' decision to outsource certain specialised tax functions aligns with its strategic objectives, including working with and through stakeholders to improve the tax ecosystem, and making non-compliance hard and costly. The revenue authority maintains the stance that most taxpayers are honest and want to be assisted to meet their legal obligations. However, Sars has made it clear on several occasions that it is also focusing its efforts on detecting taxpayers and traders who do not comply and make non-compliance hard and costly. Sars estimates the tax gap – between what is due to Sars and what it collects – to be close to R800 billion in uncollected revenue. Debt collection: a growing priority On June 30, 2025, the National Treasury reported that Sars collected R7.69 billion in cash debt in May 2025 alone. Sars is expected to collect an additional R35 billion in revenue during the 2025/26 financial year. The data shows more than R422 billion in undisputed debt outstanding, and almost R110 billion in disputed debt. The publication of the debt collection figures follows the additional allocation of R7.5 billion to Sars over the medium term. Part of these additional funds will be used to increase debt collections by an additional R20 billion to R50 billion per year, Treasury said in a statement.

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