With R7.5 billion allocated for capacity building, SARS commissioner Edward Kieswetter aims to modernise tax collection and tackle non-compliance among high earners.
Image: Timothy Bernard / Independent Newspapers
The South African Revenue Service (SARS) commissioner, Edward Kieswetter said that around 100,000 people in South Africa are making more than R1 million but avoiding paying tax as they are not registered.
The taxman said that around R100 billion in revenue could be added to the fiscus if these people pay their fair share and what is owed.
"There are probably at least 100,000 individuals who are in South Africa at the moment, earn more than R1 million, but are not on our register. Imagine if we could find them. You add another R100 billion onto your tax bill," Kieswetter said at the News24 post-Budget event.
Kieswetter welcomed the R7.5 billion Finance Minister Enoch Godongwana allocated to the institution over the next three years to build capacity to collect more tax.
The minister noted SARS was allocated R3.5 billion in the 2025/26 financial year and an additional R4 billion over the medium term.
In welcoming the allocation, Kieswetter said SARS would deploy the funding to pursue debt that was owed to it and all outstanding returns.
“It will also be used to modernise and strengthen its technology capability especially the use of data science, machine learning algorithms and artificial intelligence to respond to the sophisticated and aggressive schemes, including dealing with the illicit economy, which has had deleterious effects on our industry with accompanying loss of jobs and constraining our economic prospects,” the commissioner said.
“It will also be used to enhance efforts to facilitate legitimate trade while also frustrating illicit activities,” he said.
On Thursday, Kieswetter estimated that South Africa lost around R800 billion due to uncollected revenue.
He stated that 40% to 45% of this amount consists of debt and outstanding returns, including cases where tax returns have been submitted to the Revenue Service but is not yet paid, as well as instances where returns were due but not filed.
The remaining 55%, he explained, involves illicit financial flows, financial tax crimes, and other forms of non-compliance, highlighting the need for SARS to enhance and modernise its systems.
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