SARS Targeted Tax Collection
Why is it more important than ever to get your tax matters in order?
Although a general wealth tax was not announced in the 2021 Budget Speech, taxpayers need to be prepared for a more targeted approach from SARS when it comes to tax collection. The National Treasury is investing an extra R3 billion dedicated to growing the specialized audit and investigative skills of SARS. This investment will be used to bring the SARS Tax collection system into the modern era of AI (Artificial Intelligence) and Data Analytics.
In simple terms AI and Data analytics will enable SARS to work through limitless amounts of data and pinpoint errors and red-flag problem areas in record time. Overall compliance will be under scrutiny. Although SARS systems have improved dramatically over the last few years, the new focus will enhance and improve tax analysis and collection. AI is not new and has been around for a while, SARS will now focus on using AI to fight against and clamp down on tax evasion.
The reason this is so important is because a large amount of time is spent by auditors who analyse data, and AI will now steam-line the analysis of data and enable auditors to work through many more cases than before. Clear cases of tax evasion that previously slipped through the cracks, are less likely to be overlooked by SARS.
SARS will also be focusing on the complex tax structures of wealthy South Africans through a dedicated unit whose focus will be tax avoidance.
Taxpayers are now at greater risk and need to ensure they have both legal protection and compliance assurance to ensure they remain on the right side of the law. It is now more important than ever to be Tax Compliant. Utilising the services of a Registered Tax Practitioner can remove a lot of the headaches.
Zeelie Professional Accountants SA has Registered Tax Practitioners and a dedicated Tax Department that will assist with your Tax Compliance requirements.
Contact us today for an obligation free quotation.
Author: Neil Zeelie - Professional Accountant (SA)
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