The South African Revenue Service is stepping up its efforts to recover outstanding taxes
Image: Sora
The South African Revenue Service is stepping up its efforts to recover outstanding taxes, now even reaching taxpayers where they are most active on WhatsApp.
According to Junaid Bhayla, Team Lead: Tax Debts at Tax Consulting SA, the revenue service is combining digital communication with a R7‑billion funding boost and 1,500 new debt collectors to tackle R518 billion in undisputed tax debt.
These measures form part of the revenue service’s Project AmaBillions, an initiative targeting tax debts and aiming to systematically reduce the country's growing tax debt backlog.
Bhayla said SARS aims to collect an estimated R20‑billion to R50‑billion in additional revenue by intensifying debt collection efforts and increasing recovered debt from R95‑billion to at least R120‑billion during the 2025/26 fiscal period.
"Taxpayers should no longer assume that SARS communicates solely through letters or emails, though, as part of its digital transformation, SARS has expanded its communication with taxpayers, including direct contact via WhatsApp and other digital platforms," Bhayla said to Polity.
"Ignoring these messages or assuming they are harmless could be a costly mistake. SARS is increasingly using technology, data analytics, and third-party information to identify and engage with taxpayers who may have outstanding obligations. In other words, the tax authority is becoming smarter, faster, and more connected than ever before".
Bhayla also revealed that SARS is intensifying its efforts to track, contact, and recover unpaid taxes, with enforcement actions initiated only after issuing letters of final demand.
"SARS has, in addition to the recruitment of debt collectors, strengthened collaboration with financial institutions such as banks and allocated resources to engage with legal professionals to pursue civil judgments against non-compliant taxpayers".
"None of these steps are taken without warning, however, as these collection steps are only taken after issuance of Letters of Final Demand, which notify non-compliant taxpayers of their debts, and advise that should a taxpayer fail to engage with SARS, collection will be pursued".
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