Tag: tax collection

The updated South African National Budget for 2025, tabled on 12 March, tries to balance the need to address the country's fiscal challenges. At the same time, it aims to stimulate economic growth and improve public services. Over and above these priorities, it also balances political pressure from the Government of National Unity (GNU).

The Supreme Court of Appeal has backed Commissioner Kieswetter and issued a stern warning to all South Africans to refrain from assisting others in evading their tax obligations. Where you are caught, South African Revenue Service (SARS) will go after your personally. This is now settled law in South Africa and directors or companies, tax advisors, lawyers, accountants, or even payroll professionals can find themselves on the hook.

Hiring registered businesses is more than just cost-and-time savings, it’s for the greater good of the country. As much as addressing South Africa’s dire unemployment rate is critical, building industry role players recommend that businesses and members of the public tread carefully when securing the services of unregistered contractors.

With the corporate tax collection deficit announced in September 2023, South African Revenue Service (SARS) is dead set on filling at least this fiscal pothole. How will they do this you may ask; well, amongst other avenues, SARS are exploiting the Tax Administration Act, which provides for instances in which the representative taxpayer, employer, or vendor, will be held personally liable for a company’s tax debt!

The fiscal pressures on South African Revenue Service's (SARS) tax collection appear to have now compelled SARS to actively initiate the arrest and prosecution of taxpayers who do not accurately declare their taxable income. For long time, it has been warned that SARS possesses third-party information from banks, financial institutions, estate agents, car dealerships etc., enabling them to identify those who are not declaring their income correctly.

South Africa remains a hot spot for remote work. On the one hand, digital nomads and remote workers with foreign employers get to enjoy the South African lifestyle, good weather, and the luxury of earning Dollars and Pounds. On the other, foreign companies benefit from employing skilled South Africans, comparatively cheaper than their foreign counterparts, and without the burden of adhering to South African tax compliance regulations.

Of the companies we research, the tobacco industry has some of the best structural fundamentals. Tobacco consumption is relatively price-inelastic, which means that price increases can make up for falls in sales volumes. Taxes make up a large portion of sale prices.

Estimated Tax Freedom Day (TFD) – the day after the country has earned enough money to pay for government – will be on May 14 this year. That is 2 days later than last year’s prediction. The prediction is based on the intended level of tax collection for central government mentioned in the Budget Speech.

The 2023 Budget was tabled to Parliament on 22 February 2023 by South African Finance Minister Enoch Godongwana.

Expatriate taxpayers awaiting approval of their non-resident status may be surprised to discover that South African Revenue Service (SARS) can track their flights into and out of South Africa. This is evident from the attached Request for Additional Supporting Documents letter, received by one of our clients.