SARS collected R304 billion in compliance revenue in 2024/25, intensifying audits on high-net-worth individuals and crypto traders. Picture Credits: Nexia sab&t
By Aisha Zardad
South Africa – The South African Revenue Service (SARS) has reported a dramatic 16.7% increase in “compliance collection,” bringing in R304 billion by pursuing overdue taxes from taxpayers across the country.
High-net-worth individuals contributed R11.8 billion to this haul, as SARS deployed “targeted strategic initiatives” that boosted collections by R44.5 billion compared with the R260.5 billion recorded in 2023/24.
While the revenue gain is a positive for the national fiscus, tax experts warn that this comes at a heavy cost to taxpayers, with SARS aggressively focusing on specific segments, including crypto traders and high-net-worth individuals.
A Historic and High-Tech Crackdown: The revenue authority is intensifying audits and investigations, using historical audits that carry penalties of up to 200% of any underpaid tax. Unexplained bank transactions are automatically deemed taxable income, and additional taxes plus penalties can follow.
Technological advancements now allow SARS to track cryptocurrency transactions and investments, ensuring that even historical gains are subject to compliance review. The Tax Administration Act (section 234) allows for severe penalties, including jail time, for non-compliance.
High-Net-Worth Taxpayers in the Spotlight : SARS has also enhanced its monitoring of high-net-worth individuals through automation, data-driven insights, and dedicated relationship managers. This segment alone accounted for R11.8 billion in revenue last year, and authorities plan to increase collections further.
Tax Consulting SA warns taxpayers that SARS’ crackdown shows no signs of slowing. “As SARS continues to upgrade its compliance programmes, taxpayers in the wrong can expect their non-compliance to be both hard and costly,” the group said.
Crypto Traders Beware : Anyone holding or having held cryptocurrency should not assume they are exempt. SARS is reviewing historical transactions and expects full disclosure. Non-compliance can lead to severe penalties and criminal action.
Experts stress that while compliance strengthens the fiscus, taxpayers must remain vigilant and ensure accurate reporting to avoid steep penalties and interest.
