Tag: tax dispute resolution

The South African Revenue Service (SARS) is no longer the passive revenue service many South Africans remember. With an injection of R3.5 billion from the national budget and the ominous launch of “Project AmaBillions”, SARS has entered its most aggressive enforcement phase in years.

Given the number of fraudsters and chance-takers in today’s market, hesitancy on the part of the South African Revenue Service (SARS) is present and well-understood. Rather than simply handing out refunds to every VAT claimant without careful scrutiny, the SARS official appointed to the matter is obligated to correctly apply the law, even though it may take a little longer than expected.

Taxpayers and businesses are under increased pressure as a result of the economic downturn and impact of COVID-19. On the flip side, the South African Revenue Service (SARS) is also under pressure to meet targets. A possible outcome of this double-sided scenario is, according to experts, the potential for an increased number of tax disputes in the near future, with SARS attempting to secure revenue and taxpayers wanting to reduce their tax burden.

Global demand for greater tax transparency, emanating from corporate scandals such as Google, Amazon, Starbucks, Apple and Nike, is leading the boards and audit committees of South African corporations to ask more difficult questions than ever before about how organisations are governing their tax affairs and managing tax risks. The risk of reputational damage and financial loss is simply too high to be ignored.