Latest news with #SARevenueService
IOL News
a day ago
- Business
- IOL News
SARS aims for R100bn in tax collection this season
Sars's debt book is currently comprised of all tax types, including personal and corporate income tax, as well as value-added tax and unpaid payroll taxes. Image: Ziphozonke Lushaba/Independent Newspapers HAVING had great success with its specialised tax compliance programmes over the last few years, the SA Revenue Service (Sars) has now called in the cavalry this tax return filing season, through Project AmaBillions, to bolster its tax debt collection capabilities. As the name may indicate, the successful collection of billions in outstanding tax revenue, be it disputed or undisputed tax debts, requires the harmonising of manpower and artificial intelligence, both key items on Sars's agenda. The revenue authority's recently published monthly collection data showed R95 billion in outstanding taxes being collected for the 12-month period ending March 2025. Although an impressive and unprecedented collection windfall, a staggering R422.6bn in undisputed tax debts, remains outstanding as at the end of May 2025. In its pursuit of making non-compliance hard and costly, and chasing South Africa's largest ever tax revenue collection pay-day, Sars has taken the idiom of 'you have to spend money to make money' to a whole other level. Through an additional expenditure allocation of R7.5bn over the medium-term, Sars has onboarded around 1 700 new resources, from matriculants to seasoned tax and compliance experts. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Sounds a lot like Survivor, or better yet, the Hunger Games — only the strong will survive… but no, the intention behind this strategic move is to spend a few billion rand, to collect Amabillions; R20 to R50 billion more, per year, to be precise. With a current debt book totalling more than R530bn, Sars's assertive collection efforts do serve the best interests of the South African economy, even if the taxpayers finding themselves with a civil judgment against their names do not think so. Sars's debt book is currently comprised of all tax types, including personal and corporate income tax, as well as value-added tax and unpaid payroll taxes. This includes taxpayers who wilfully avoid or evade the payment of their taxes, whose amounts are well within their means to settle, and who should not be surprised when Sars empties their bank accounts. But what happens to those individuals, or small businesses, who, due to unforeseen circumstances, simply cannot afford to settle their tax debt to Sars? Whether it be more time needed (monthly instalments), or interest and penalties having snowballed the debt well beyond affordability and some financial reprieve is needed, there are legal tax debt relief mechanisms available. Where a taxpayer is truly experiencing financial hardship, they may qualify for a compromise of tax debt. This is where the taxpayer, who cannot afford to settle the entire amount, approaches Sars and asks for a write-off of interest and penalties which have been attributed to the capital amount owed. The taxpayer then offers to settle (in part or in full) the capital amount owed to Sars, either by lump sum or instalment payments. This proposal, when accepted by Sars, must be reduced to writing. The biggest attraction to a compromise is the write-off of interest and penalties, which is a life jacket afforded to taxpayers who are genuinely experiencing financial hardship but wish to settle their debt and remain compliant moving forward. It is also important to note that a compromise can be applied to any form of tax debt and across all tax types, be it income tax, VAT or PAYE, and regardless of whether it is for an individual, trust or company. There is relief available to all taxpayers who qualify for the compromise of tax debt. Taxpayers who do not satisfy the requirements for a compromise but cannot afford to settle a tax debt in a lump sum payment still have the option to apply and enter into a payment arrangement with Sars, which is known as a deferral of payment. This is where the taxpayer applies to Sars, subject to certain conditions, for a payment agreement in which the taxpayer can settle the outstanding amount over monthly instalment payments over time. This is an attractive option to many taxpayers, as it lessens the burden and reduces a large number that is expected to be settled immediately, to one that is manageable and paid in monthly instalments, which are convenient to the taxpayer and Sars. To protect yourself from Sars, ensuring compliance remains the best strategy. Where you find yourself on the wrong side of Sars, there is a first-mover advantage in seeking the appropriate tax advisory, ensuring the necessary steps are taken to protect both yourself and your bank balance from paying the price for what could be the smallest of mistakes. However, where things do go wrong, Sars must be engaged legally on all fronts. As a rule of thumb, all correspondence received from Sars should be immediately addressed by a qualified tax specialist or tax attorney, which will serve to safeguard taxpayers against Sars implementing collection measures. It is recommended that a request for compromise or payment arrangement be made in a proactive manner, even before a Letter of Final Demand is received, rather than waiting for Sars to come knocking at your door. Through these carefully negotiated solutions, there is the possibility of a fresh start — a fair and balanced outcome that recognises the taxpayer's situation and provides the breathing room necessary to regain financial stability, whilst ensuring tax compliance this 2025 tax return filing season. * Jashwin Baijoo is an associate director and head of strategic engagement and compliance at Tax Consulting SA. ** The views expressed here do not reflect those of the Sunday Independent, IOL, or Independent Media. Get the real story on the go: Follow the Sunday Independent on WhatsApp.
TimesLIVE
4 days ago
- Politics
- TimesLIVE
Cache of firearms seized from MaMkhize's home belonged to Matlala's company: Ian Cameron
Police portfolio committee chair Ian Cameron has revealed the cache of firearms seized from controversial businesswoman Shauwn 'MaMkhize' Mkhize's home in Durban last year belonged to the security company owned by businessman Vusumuzi 'Cat' Matlala. In November 2024, more than 40 firearms were confiscated from Mkhize's mansion during a raid by the Hawks, police and SA Revenue Service. Matlala was implicated in damning allegations made by KwaZulu-Natal police commissioner Lt-Gen Nhlanhla Mkhwanazi against senior law enforcement officials, accusing them of interfering in cases police are investigating. Mkhwanazi said WhatsApp messages found on Matlala's phone allegedly link police minister Senzo Mchunu to communications through an associate, Brown Mogotsi. Matlala was arrested on May 14 on three counts of attempted murder. His company was awarded a R360m contract by the SA Police Service in 2024.
IOL News
4 days ago
- Business
- IOL News
Essential tips for a stress-free tax season
Johan Werth, Franchise Principal and Financial Adviser from Consult by Momentum shares common pitfalls to avoid this tax season. Image: Supplied WHEN it comes to tax season, there are three types of people: The Proactive (they know what to do and get on it fast); The Procrastinator (they know what to do but leave it to the 11th hour); and The Panicker, who is not really sure what to do and hopes that if they ignore it, it might go away. This year's tax filing season officially kicks off in July, with auto assessments running from July 7–20. For non-provisional taxpayers who were not auto-assessed, they will be able to submit and file their income tax returns between 21 July–20 October. If you're a 'Procrastinator' or 'Panicker' type, a common — but dangerous — mistake is assuming the SA Revenue Service (Sars) will auto-assess or that no filing is needed, especially if you earn under R500 000 per annum. You can see if you are liable to submit a return by checking to see if there are communications from Sars or by using the Sars website. You can also consult a tax practitioner to confirm if you are required to file. What is tax filing season, and who does it apply to? The tax filing season is the period during which taxpayers must submit their income tax returns to the Sars for the previous tax year (which runs from March 1 to the last day of February of the following year). For the current period, it would refer to March 1, 2024, to February 28, 2025. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Individuals who must file an income tax return are: South African residents and non-residents who earned income in South Africa during the tax year. Have capital gains, foreign income, or receive dividends not subject to automatic withholding tax. Earn multiple income sources — eg salary and rental income. Earn more than the tax threshold for the year — eg over R95 750 for under-65s in the 2025 tax year. Want to claim deductions — eg medical expenses, retirement annuities, travel allowances. Are provisional taxpayers — usually those who earn income not subject to pay as you earn (PAYE), such as freelancers, sole proprietors, or rental income earners. Aside from not filing a return at all, here are some common mistakes people make during tax filing season, and how to avoid them: Missing the deadline: Late or missed submissions can lead to penalties. Set reminders and file early, even if you're auto-assessed. Late or missed submissions can lead to penalties. Set reminders and file early, even if you're auto-assessed. Submitting incorrect or incomplete info: Outdated details, missing certificates or source code errors can delay processing. Double-check all data and use Sars eFiling's guided tools. Outdated details, missing certificates or source code errors can delay processing. Double-check all data and use Sars eFiling's guided tools. Ignoring your auto-assessment: Don't just accept it blindly: review for missing deductions (like retirement annuity or medical aid) and file manually if needed. Don't just accept it blindly: review for missing deductions (like retirement annuity or medical aid) and file manually if needed. Not claiming eligible deductions: Medical costs, travel, home office, and retirement contributions can reduce your tax — but only if you claim them with proof. Medical costs, travel, home office, and retirement contributions can reduce your tax — but only if you claim them with proof. Poor document management: Failing to keep receipts, logs or tax certificates puts you at risk in an audit. Store everything digitally for at least five years. What happens if you don't file? Failing to file a return when required can come at a high cost, even if you're owed a refund. Sars may impose monthly administrative penalties of up to R16 000, initiate legal action, and block access to essential services like home loans or emigration clearance. It is a criminal offence not to file when you are legally required to. Even if you have earned below the threshold, it's worth checking your status on eFiling or with a tax practitioner. To make the process smoother and more financially beneficial, you can do the following: Keep all supporting documents for five years, whether digitally or in the cloud. Don't overlook key deductions like retirement annuities, home office expenses or out-of-pocket medical costs — but only claim what you're eligible for. Check your Sars auto-assessment, especially if you have income from multiple sources. Use a professional such as a financial adviser or tax practitioner if you are struggling with the admin — especially if your situation is more complicated, and includes things like freelancing, working overseas, or capital gains. Tax season does not have to be stressful. But ignoring it or rushing through it can lead to bigger problems down the line. * Johan Werth is the franchise principal and financial adviser from Consult by Momentum. ** The views expressed here do not reflect those of the Sunday Independent, ION, or Independent Media. Get the real story on the go: Follow the Sunday Independent on WhatsApp.
The Herald
04-07-2025
- The Herald
Sars warns on fuel contamination scams that cost fiscus R3.6bn a year
The SA Revenue Service (Sars) has issued a strong warning about the growing threat of fuel adulteration and illicit trade in the country, revealing that the fiscus loses about R3.6bn a year from these illegal activities. According to Sars, some diesel samples analysed during recent investigations were found to contain up to 68% paraffin, highlighting the severity of fuel tampering. A joint-intelligence team comprising Sars and police officials has so far identified 23 targets across Gauteng, Mpumalanga and KwaZulu-Natal as part of a crackdown on the illicit fuel economy. This operation led to the discovery of 953,515 litres of contaminated diesel and six fuel depots that were operating in contravention of section 37 of the Customs and Excise Act 91 of 1964 as amended. Sars revealed that assets and contaminated fuel worth R367m were seized, leading to further investigations and possible criminal and civil liabilities. 'Two so-called fuel 'washrooms' were uncovered — one of which is a rare mobile washroom fitted on to a transport truck. These were used to remove paraffin markers,' Sars said. In addition, 12 fuel-transport trucks were flagged for suspected false declarations, whereby tankers claiming to import an average of 15,000 litres of fuel were found to be carrying significantly more. So far, 13 criminal cases have been registered with the police, supported by Sars trade investigators for customs and excise contraventions and fraud. In the past four months, the National Joint Operational and Intelligence Structure (NATJOINTS) has conducted multiple interventions to combat the illegal trade. Sars said the Maputo Corridor linking South Africa, Eswatini and Mozambique has over the past decade become a hotbed for fuel smuggling and adulteration driven by organised criminal networks. 'Some importers declare fuel volumes of 40,000 litres or less, whereas investigations reveal that up to 60,000 litres are actually being brought into the country,' said Sars. The agency warned that illegal mixing of diesel with paraffin has become a national trend, often carried out by fuel storage and distribution depots. Fuel adulteration refers to the practice of mixing petroleum products, particularly diesel, with cheaper substances such as paraffin or even water. This is done to inflate the volume of fuel sold, enabling illicit profits at the expense of quality and safety. Adulterated fuel can severely damage engines and machinery, leading to increased maintenance costs and shorter vehicle lifespans. This comes as South Africans were hit with steep fuel price hikes on Wednesday. Diesel 0.05% increased by 82c/litre Diesel 0.005% increased by 84c/litre Illuminating paraffin went up by 67c/litre. Sars stressed that this activity is part of a broader illicit economy that poses a serious risk to the country. 'The illicit economy is a global phenomenon that threatens South Africa's society, economy and national security. Tax evasion, smuggling, illegal transactions, illicit manufacturing and fraud undermine the rule of law, erode public trust, distort markets, deprive governments of revenue, and enable corruption and organised crime,' said Sars. The agency called for a whole-of-government approach involving public entities, the private sector, civil society and international partners to effectively dismantle these networks. Sars commissioner Edward Kieswetter praised the joint efforts of enforcement agencies. 'These syndicates can only underestimate our resolve to eradicate this criminality at their peril. These acts threaten the very foundation of our society. Our message is clear: we will spare no efforts to crush them,' said Kieswetter. TimesLIVE
TimesLIVE
03-07-2025
- TimesLIVE
Sars warns on fuel contamination scams that cost fiscus R3.6bn a year
The SA Revenue Service (Sars) has issued a strong warning about the growing threat of fuel adulteration and illicit trade in the country, revealing that the fiscus loses about R3.6bn a year from these illegal activities. According to Sars, some diesel samples analysed during recent investigations were found to contain up to 68% paraffin, highlighting the severity of fuel tampering. A joint-intelligence team comprising Sars and police officials has so far identified 23 targets across Gauteng, Mpumalanga and KwaZulu-Natal as part of a crackdown on the illicit fuel economy. This operation led to the discovery of 953,515 litres of contaminated diesel and six fuel depots that were operating in contravention of section 37 of the Customs and Excise Act 91 of 1964 as amended. Sars revealed that assets and contaminated fuel worth R367m were seized, leading to further investigations and possible criminal and civil liabilities. 'Two so-called fuel 'washrooms' were uncovered — one of which is a rare mobile washroom fitted on to a transport truck. These were used to remove paraffin markers,' Sars said. In addition, 12 fuel-transport trucks were flagged for suspected false declarations, whereby tankers claiming to import an average of 15,000 litres of fuel were found to be carrying significantly more. So far, 13 criminal cases have been registered with the police, supported by Sars trade investigators for customs and excise contraventions and fraud. In the past four months, the National Joint Operational and Intelligence Structure (NATJOINTS) has conducted multiple interventions to combat the illegal trade. Sars said the Maputo Corridor linking South Africa, Eswatini and Mozambique has over the past decade become a hotbed for fuel smuggling and adulteration driven by organised criminal networks. 'Some importers declare fuel volumes of 40,000 litres or less, whereas investigations reveal that up to 60,000 litres are actually being brought into the country,' said Sars. The agency warned that illegal mixing of diesel with paraffin has become a national trend, often carried out by fuel storage and distribution depots. Fuel adulteration refers to the practice of mixing petroleum products, particularly diesel, with cheaper substances such as paraffin or even water. This is done to inflate the volume of fuel sold, enabling illicit profits at the expense of quality and safety. Adulterated fuel can severely damage engines and machinery, leading to increased maintenance costs and shorter vehicle lifespans. This comes as South Africans were hit with steep fuel price hikes on Wednesday. Diesel 0.05% increased by 82c/litre Diesel 0.005% increased by 84c/litre Illuminating paraffin went up by 67c/litre. Sars stressed that this activity is part of a broader illicit economy that poses a serious risk to the country. 'The illicit economy is a global phenomenon that threatens South Africa's society, economy and national security. Tax evasion, smuggling, illegal transactions, illicit manufacturing and fraud undermine the rule of law, erode public trust, distort markets, deprive governments of revenue, and enable corruption and organised crime,' said Sars. The agency called for a whole-of-government approach involving public entities, the private sector, civil society and international partners to effectively dismantle these networks. Sars commissioner Edward Kieswetter praised the joint efforts of enforcement agencies. 'These syndicates can only underestimate our resolve to eradicate this criminality at their peril. These acts threaten the very foundation of our society. Our message is clear: we will spare no efforts to crush them,' said Kieswetter.
