The Business Hour's Olebogeng Motse spoke to Walter Blake, MAZARS’ managing director, to find out more about SARS’ tax assessments and tax recovery:

Unlocking the Power of Technology for Accurate Tax Assessments

In an era marked by economic challenges, the South African Revenue Service (SARS) stands at the forefront, leveraging cutting-edge technology to enhance tax assessments. The embrace of advanced data analytics and the integration of third-party data have become the pillars of SARS' approach, enabling them to cross-verify taxpayer information with precision. This results in accurate tax assessments, setting a firm foundation for tax compliance.

The commitment to progress doesn't stop here. SARS continually updates its systems to streamline the tax submission process. While this has introduced more comprehensive reporting requirements for businesses, it's a vital step towards a more transparent and equitable tax system. On the other hand, for individuals earning salaries, the advent of automated assessments has led to a substantial improvement in tax compliance.

Revolutionizing Auditing for Enhanced Compliance

SARS has adopted a dynamic, risk-based approach to auditing. This strategy allows them to direct their efforts to areas with higher risks of non-compliance. Simultaneously, SARS has bolstered its auditing capacity by investing in comprehensive training for auditors and state-of-the-art audit software. These advancements facilitate the identification of irregularities and ensure a meticulous review of financial records. The shift towards e-auditing introduces a new era of efficiency, reducing the time and resources required for both SARS and taxpayers.

A Structured Approach to Recovery

In the event of taxpayers falling into arrears, SARS follows a well-defined recovery process. The journey begins with a courteous notification to the taxpayer regarding the outstanding amount, accompanied by the opportunity to settle or make suitable payment arrangements. SARS encourages taxpayers to embrace this opportunity for engagement, reducing the likelihood of more stringent recovery actions. If, however, no response is received, SARS may proceed with measures like garnishing bank accounts or initiating legal action. The collaborative efforts with other governmental bodies ensure a coordinated approach to recovery, making it a comprehensive and fair endeavour.

Protecting Taxpayer Rights and Fair Treatment

The cornerstone of SARS' operations is a steadfast commitment to ensuring fair treatment for all taxpayers. This commitment aligns with the framework of the Tax Administration Act, which upholds the rights of both taxpayers and SARS. Taxpayers hold the right to dispute assessments, with a well-established objection and appeal process in place. Moreover, during audits, taxpayers have the right to professional representation, and recovery actions strictly adhere to the law, ensuring due process at every stage. The application of the Tax Administration Act by SARS, particularly in cases of non-compliance, has seen significant growth. Administrative penalties and estimate assessments have become more common, emphasizing the importance of taxpayers understanding their rights within this framework. Seeking professional guidance before engaging with SARS is highly recommended.

The Future of SARS: A Tech-Driven Path to Compliance

Looking forward, SARS remains dedicated to the ongoing integration of technology in its tax administration. Anticipate a future of increased automation, the utilization of artificial intelligence for data analysis, and the implementation of system integration to monitor transactions. These advancements are poised to result in more accurate assessments, streamlined audits, and a smoother recovery process. Ultimately, these innovations are set to enhance compliance and boost revenue collection, reaffirming SARS' pivotal role in fostering a fair and efficient tax ecosystem.

Navigating the Future with MAZARS

In this ever-evolving tax landscape, MAZARS is your steadfast partner. With their unwavering support and expertise, they will ensure that you're well-prepared for the future, helping you harness the potential of SARS' tech-driven path to compliance. Partner with MAZARS, your trusted guide to success in tax compliance.