Tag: South African Revenue Service (SARS)

In its drive to meet the ambitious 2025/26 revenue estimate of R1.986 trillion, the South African Revenue Service (SARS) has made its expectations clear. Timely, transparent and accurate tax submissions are now the new normal. Central to this approach is the expanded use of third-party data. This applies broadly, including trusts and Non-Profit Organisations (NPOs).

The Constitutional Court judgement in Greyvensteyn vs Commissioner for SARS and Others has been welcomed by South African Revenue Service (SARS)! Serving to reaffirm the constitutionality of SARS holding individuals personally liable for company debts, the Greyvensteyn judgement emphasises this point. It also supports SARS pursuing recovery from those persons. The judgement highlights the importance of tax revenue collection

A recent Supreme Court of Appeal (SCA) ruling should deliver a stark warning to businesses claiming input Value Added Tax (VAT) deductions without a watertight legal foundation. In Aveng Mining Shafts & Underground v CSARS (1192/2023) [2025] ZASCA 20, the SCA sided with South African Revenue Service (SARS) and disallowed almost R17.5 million in VAT input claims.

Late last year, President Cyril Ramaphosa signed the Taxation Laws Amendment Act No. 42 of 2024. This Act introduced a significant tax incentive. The government aims to promote battery electric and hydrogen-powered vehicle production through this initiative.

The 2025 Budget Speech, delivered on 12 March 2025, made it clear that financial crime enforcement and compliance are priorities. The government has allocated increased funding for forensic investigations, regulatory oversight and tax compliance monitoring

The shocks, surprises and shortfalls in the initial budget on 19 February 2025 made way for a reworked National Budget. This new budget is marked by cuts, compromises and curveballs. Although Finance Minister Enoch Godongwana’s first budget attempt was unexpectedly stopped three weeks ago, a higher VAT rate is still on the table.

We note the tabling of the delayed 2025 National Budget. As with previous budgets, the steps announced by Finance Minister Enoch Godongwana highlighted the need for higher growth rates in the domestic mining sector and the broader economy.

Small businesses in South Africa manage multiple priorities, such as business efficiency, innovation and growth. Many overlook the value of claiming the full range of tax benefits available to them amidst these daily challenges.

Burying your head in the sand will not protect you from a tax debt owed to South African Revenue Service (SARS). The imminent threat to your bank balance will not simply "blow over". You will likely resurface to find SARS has attached your savings, leaving you with no legal recourse for recovery.

We are urging all young entrepreneurs to secure their businesses’ long-term success by ensuring their full tax compliance by February 28, 2025.