Individual taxpayers’ compliance continues to improve, says the South African Revenue Service (Sars), with the submission of one million more non-provisional personal income tax returns compared to last year.
The deadline for non-provisional taxpayers to submit their income tax returns was 23 October.
In a statement last week, Sars said it received seven million returns from non-provisional taxpayers, compared to six million last year.
The revenue-collection agency said:
- 88% of returns were filed via eFiling and the MobiApp platforms;
- 93% of returns were processed in five seconds;
- 79% of refunds were processed in 72 hours; and
- more than R29 billion has been paid in refunds.
Auto-assessments are gaining traction, with five million taxpayers receiving assessments already calculated in the current year, up from three million the previous year.
Sars thanked taxpayers who filed their returns and paid what was due, saying it believes most taxpayers are honest and want to do the right thing by meeting their legal obligations.
“The rapid development of data science, algorithms, machine learning, and the various third-party data sources has enabled Sars to provide taxpayers with a smooth and seamless service experience,” the statement said. These digital platforms have also enabled Sars to identify non-compliant taxpayers.
Sars has identified the following categories of non-compliant taxpayers:
- registered taxpayers who have not filed a return;
- taxpayers who have not made a payment where it was due;
- taxpayers who are not registered as taxpayers despite being economically active; and
- taxpayers who may in the past not have been required to file, but who receive income from employment, investments, rental, or other income; and
- taxpayers who may have received shares or have active business interests that push them above the income threshold, which means they must file a return.
Sars urged these taxpayers to regularise their tax matters as a matter of urgency and encouraged them to approach the Voluntary Disclosure Programme (VDP) unit before Sars contacts them. If a taxpayer’s VDP application reaches Sars after Sars has contacted them, the VDP option falls away, and the taxpayer’s application will not be accepted.
“Sars is willing and ready to assist taxpayers who want to be compliant. Where taxpayers wilfully and intentionally ignore their legal obligations, Sars will act sternly.”
Sars Commissioner Edward Kieswetter expressed his appreciation to compliant taxpayers who have discharged their legal obligations.
He also said “some taxpayers are intentionally non-compliant by making false declarations to Sars or plainly ignoring their legal obligations. Those who engage in such conduct must know that what they are doing is, in fact, not only a civil offence, but also a criminal offence, which will be met with the proportionate response. The courts have confirmed that Sars is acting lawfully by confronting non-compliance.”
