SARS Coming After South African Taxpayers for Millions
SARS is intensifying its crackdown on tax evasion and non-compliance, using expanded powers and close cooperation with the Investigating Directorate Against Corruption (IDAC) to pursue taxpayers for millions of rand and impose serious criminal penalties.
Landmark conviction sends clear warning
On 9 December 2025, SARS and IDAC announced a major legal victory. Tshepo Khoza, director of Grey Apple Trading Enterprise, was sentenced to six years in prison (with two years suspended) for fraud and tax evasion of around R3.6 million.
Khoza’s company received SAPS forensic laboratory tenders under the DNA project, allegedly due to family ties to a senior SAPS official. Between 2015 and 2018, despite earning substantial income, Khoza declared the company dormant, failed to register for VAT, and did not declare the income to SARS.
The conviction, arising from Project Blue Lights, is a strong signal that the state is serious about tackling procurement corruption and tax evasion. SARS Commissioner Edward Kieswetter stressed that tax fraud is not a victimless crime, but theft from the national fiscus and from citizens who rely on public services.
Personal liability under the Tax Administration Act
SARS is increasingly using the Tax Administration Act (TAA) to hold individuals personally liable for company tax debts.
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Section 180 allows SARS to pursue anyone involved in managing a company’s financial affairs if they acted negligently or fraudulently.
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Formal titles are not required — directors, shareholders, financial officers, and even informal advisors can be held liable.
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Liability includes tax owed, penalties, and interest.
Sections 153 to 155 further allow SARS to hold “representative taxpayers”, such as public officers, personally responsible for unpaid company taxes.
Criminal charges are a real risk
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Section 234 of the TAA provides for fines or up to two years’ imprisonment for tax-related offences.
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Section 235 goes further, with tax evasion and fraudulent refunds carrying penalties of up to five years in prison.
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Paying penalties alone may not be enough — criminal prosecution can still follow.
SARS and IDAC tightening the net
SARS and IDAC are now working closely to dismantle corruption networks, particularly in public procurement. IDAC’s strengthened investigative and prosecutorial powers have made enforcement faster, more visible, and more effective.
This marks a shift away from corruption being seen as a tolerated risk to one carrying severe legal consequences.
Warning to taxpayers
SARS is becoming more aggressive, data-driven, and coordinated in enforcement. Even smaller-scale or negligent non-compliance can result in criminal charges.
Taxpayers already at risk are urged to engage SARS proactively and legally. Ignoring correspondence or delaying action will only worsen outcomes.
Experts advise that any communication from SARS should be addressed immediately with the help of tax, legal, and financial professionals to avoid escalating penalties and criminal exposure.
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