SARS has ramped up their use of AI in tax collection
Tax collection in South Africa is getting more serious. The national Revenue Service (SARS) is now using artificial intelligence and machine learning to collect taxes more efficiently.
The taxman uses advanced technology to examine tax affairs. This helps reduce the chance of mistakes, even simple ones.
Recent announcements from SARS show that there is less room for error in tax submissions. Taxpayers need to take the matter seriously to avoid costly mistakes.
The message from SARS about its 2024 compliance programme should grab the attention of anyone involved in tax affairs.
According to SARS: “The Compliance Programme uses data, artificial intelligence and machine learning algorithms to successfully counter criminality and willful non-compliance.”
This signal indicates that SARS has caught up to non-compliant taxpayers and should be a point of concern for them.
Many taxpayers' lives are changed forever after a deep penetrating audit by SARS. SARS has been collecting outright by simply taking the money from taxpayers' bank accounts. If your finances are complex or you have unexplained wealth, a SARS tax audit can greatly affect your life.
This audit can have long-term consequences for you. It is important to be prepared for the potential impact of a SARS tax audit. Make sure to seek professional advice if you are facing this situation.
SARS has been making more and more use of Artificial Intelligence to do the heavy lifting.
In SARS audits there are questions that leave very little room for taxpayers who are trying to dodge the taxman.
The questions include:
- Clarify your involvement
- Submit proof of sale
- Submit 12 months’ bank statement from all related accounts
- Highlight all credit deposits with a description for all accounts
- Reconcile all your income (from all bank accounts) with your declaration
- List all your assets and liabilities
Evidently, SARS is using the cross-referencing of data to investigate taxpayers. The level of detail and sophistication showcased in the document necessitates a heightened standard of diligence.
SARS is focusing on taxpayers who don't follow the rules. Taxpayers who do follow the rules might also be impacted by the new audit requirements.
SARS is working hard to collect all owed taxes and they are using AI to monitor compliant and non-compliant taxpayers closely.
Taxpayers will need to be more vigilant and active in their tax compliance. The advent of AI-led probes implies that errors or inconsistencies will not be ignored. The improved abilities of SARS require careful documentation and compliance with rules.
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