SARS starts war against illicit trade and other tax crimes

The government claims that the South African Revenue Service (SARS) needs to be strengthened in order to boost revenue collection.

With the support of some of the country’s law enforcement agencies, South African Revenue Service (SARS) says it has put in place procedures to crack down on illicit trade and other tax offenses as part of its administrative overhaul.

For the fiscal year 2021-22, SARS collected just over R1.5 trillion in income.

Composition of main sources of tax revenue#SARSRevenue pic.twitter.com/STzZYrblpJ

— SA Revenue Service (@sarstax) April 1, 2022

Finance minister Enoch Godongwana said on Friday at a SARS media conference in Pretoria that tax legitimacy and perceptions of justice in the distribution of tax burden are critical factors in citizens’ willingness to pay taxes.

“As a result, it is critical to adhere to the principles of a strong tax system, which include efficiency, equity, simplicity, transparency, and certainty, as well as maintaining a tax system that responds to the economy’s business cycle.”

SARS media briefing in the video below: 

Since its re-establishment two years ago, the South African Tax Service’s (SARS) Large Business Unit has contributed a major boost to revenue collections totaling half a trillion rand.

The section is responsible for collecting taxes from JSE-listed firms, mining companies, multinational corporations, and high-net-worth individuals.

The solid economic rebound, which has been aided by rising commodity prices, has bolstered revenue collections, according to South African Revenue Service (SARS).

All these measures put in by South African Revenue Service (SARS) for only for the 2021 and 2022 financial year.