By Lehlohonolo Lehana.
With the 2023 tax season for non-provisional taxpayers under its belt, The South African Revenue Service (SARS) recorded the majority of tax returns via its digital platforms.
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.
Sars digital efforts seem to have paid off as 88% of returns were made using eFiling and MobiApp platforms.
SARS has also thanked taxpayers who made outstanding payments that were due.
“SARS Auto-Assessment is also gaining traction with four million taxpayers receiving assessments already calculated in the current year, up from three million the previous year.
“The rapid development of data science, algorithms, machine learning and the various third-party data sources has enabled SARS to provide taxpayers with a smooth and seamless service experience.
“While these digital platforms have been used to give the best service to compliant taxpayers, it has also allowed SARS to identify categories of non-compliant taxpayers,” SARS said.
SARS has seen an increase in the levels of compliance; however, it remains concerned about non-compliant taxpayers who have not submitted a return as required.
SARS has identified the following in relation to non-compliant taxpayers:
- Registered taxpayers who have not, for whatever reason, filed a return;
- Taxpayers who have not made a payment where it was due;
- Taxpayers who are not registered as taxpayers, despite being economically active; and
- Taxpayers who may in the past not have been 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.
“Non-compliant taxpayers are reminded that they do face legal consequences for failing to register, file a return and/or make payments where applicable.
“These taxpayers are urged to regularise their tax matters as a matter of urgency and are encouraged to approach the Voluntary Disclosure (VDP) unit before SARS contacts them.
“If such a taxpayer’s VDP application reaches SARS after SARS has contacted them, the VDP option falls away and their applications will not be accepted. SARS is willing and ready to assist taxpayers who want to be compliant. Where taxpayers wilfully and intentionally ignore their legal obligations, SARS will act sternly,” SARS said.
SARS Commissioner Edward Kieswetter expressed his appreciation to compliant taxpayers who have discharged their legal obligations.
“Some taxpayers are intentionally non-compliant by making false declarations to SARS or plainly ignoring their legal obligations. Those who engage in such conduct must know that what they are doing is in fact not only a civil offence, but also a criminal offence, which will be met with the proportionate response. The courts have confirmed that SARS is acting lawfully by confronting non-compliance,” Kieswetter said.