Tag: Tax Consulting SA

Recent communication by the South African Revenue Service (SARS) signals an increased focus on high-wealth individuals. It highlights how these individuals fund trusts, companies and similar structures. This applies especially where arrangements may trigger donations tax exposure.

Value-Added Tax (VAT) remains one of the most powerful revenue instruments available to the South African fiscus. In practical terms, it continues to rival personal income tax as a primary contributor to government revenue. It also remains indispensable to the South African Revenue Service (SARS)’s collection mandate. This reality matters.

On 26 November 2025, the South African Revenue Service (SARS) released a draft Interpretation Note on section 7C of the Income Tax Act No. 58 of 1962. Section 7C is an anti-avoidance provision. It targets interest-free or low-interest loans used to fund trusts. The tax authority’s message is clear. There is no such thing as an informal, interest-free loan to your trust anymore. This position amounts to a direct warning to young South Africans who increasingly use trusts as wealth vehicles.

Budget Day 2026 may have lacked drama, but beneath the surface it delivered a series of quietly positive tax developments. Rather than introducing aggressive new revenue collection measures, the National Treasury opted for stability, targeted relief and structural adjustments that favour taxpayers, savers and small businesses.

Have you been living the life on social media and not telling SARS? Have you gone on overseas trips to exotic destinations? More so, have you purchased new cars, houses, expensive brand clothes, watches or jewellery? The latest legislative change spans at least 14 government bodies that can conduct lifestyle audits.

In its relentless pursuit of tax compliance, the South African Revenue Service (SARS) has launched a series of initiatives to streamline tax processes through automation enhancements. Specifically, these initiatives identify focus areas to strengthen detection, enforcement and voluntary compliance. As a result, SARS has introduced SARS Modernisation 3.0.

South African law requires any person who becomes liable for tax, whether income tax, VAT, or Capital Gains Tax, to register as a taxpayer with the South African Revenue Service (SARS). You must obtain a tax number. This unique identifier, issued by SARS, tracks and manages your tax obligations and compliance.

The Supreme Court of Appeal (SCA) has delivered a judgment that reinforces SARS’ strict stance on understatement penalties and estimated assessments. The ruling confirms the South African Revenue Service (SARS)’s authority when taxpayers fail to provide accurate information. SCA confirms SARS’ firm approach to enforcement and compliance.

As we step into 2026, there is no better time for taxpayers to gain clarity on their standing with the South African Revenue Service (SARS). Many individuals assume their tax affairs are in perfect order. However, as the saying goes, assumption is the mother of all mistakes. When dealing with SARS, that mistake can become costly.

On 15 December 2025, the South African Revenue Service (SARS) issued a media release reminding trustees and provisional taxpayers of the trust and provisional tax filing season. The filing deadline for trust income tax and provisional tax returns is 19 January 2026.