CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. SARS Starts High-Risk Sector Compliance Drive

SARS Starts High-Risk Sector Compliance Drive

by Lorys Charalambous,, Cyprus

03 February 2016

The South African Revenue Service (SARS) has begun its focused approach, launched in December 2015, to enhance tax compliance in several high-risk sectors, starting with cash and carry businesses.

On February 2, SARS Commissioner Tom Moyane announced the launch of random on-site inspections targeting those businesses. On-site inspectors will perform compliance checks to identify registration and filing non-compliance.

SARS also uses a wide range of methods to detect non-compliance, including high-tech scans of import containers, cross-checking its information against third-party data, and on-site audits and tip-offs.

Depending on the intention and severity of the non-compliance, SARS can impose stringent penalties of up to 200 percent of all taxes owed for the period a business should have been registered and filing. In some cases, negligent taxpayers could face criminal prosecution.

However, SARS said it is offering relief to businesses who volunteer information about any tax that they owe. Taxpayers are urged to come forward via the Voluntary Disclosure Program (VDP) to avoid the more stringent penalties associated with forced compliance.

"Our approach is to ensure all taxpayers, both individuals and companies, do the right thing," said Moyane. "SARS would be doing a disservice to countless honest taxpayers if non-compliant taxpayers are allowed to operate without consequences."

"SARS believes in supporting those that try to comply," he added. "If you are not compliant, you should take the opportunity to put your tax affairs in order. This can be done through the VDP; the consequences will be less severe than if SARS establishes the non-compliance."

TAGS: South Africa | compliance | tax | business | tax compliance | law | enforcement | tax authority | penalties | Africa | Tax

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »