SARS e-filing warning for wealthy South Africans

The South African Revenue Service (SARS) has rolled out a new questionnaire for the 2026 filing season to flag potential discrepancies.

Experts warned that high-income taxpayers, in particular, should respond carefully to this questionnaire to avoid disputes and audits.

SARS has introduced several changes to the 2026 Filing Season to make the process easier and smoother. The aim is to get it right the first time.

One of the changes is a new declaration alert questionnaire to help identify and resolve issues earlier, reducing the chances of a taxpayer’s return being selected for verification or audit.

Unicus Tax Specialists South Africa founder Nico Theron welcomed the change and explained that taxpayers will likely receive the alert before they submit their returns.

It appears that the alert will prompt the taxpayer that something may be wrong or missing from the return.

“Remember, SARS knows almost everything about you,” he said. It will serve as a “warning” about the wealth of third-party data available to SARS and what needs to be declared, and how to declare it correctly.

In the past, a taxpayer would receive a verification notice as soon as they submitted their return, and SARS would pick up discrepancies between their third-party data and the information declared by the taxpayer.

With the change, it seems that the taxpayer gets a pre-assessment verification alert. If so, SARS is warning taxpayers in advance that they will probably be picked for verification if they do not take action on the alert.

“This is a great idea, and we will have to wait and see if it is going to contribute constructively to the eFiling process, or whether it is going to create unnecessary delays or result in incorrect assessments,” Theron said.

Even though the alert is intended to help taxpayers, Theron said some will likely ignore it. “This is not advisable,” he warned.

“If you choose to ignore it and there are errors in the return, it is highly likely that you will receive an assessment that you disagree with.”

He said he suspects SARS will not be too forgiving with taxpayers who ignored the alert and submitted incorrect or incomplete returns.

Once a taxpayer receives the alert, it is advisable to get help in understanding what must be done to get it right the first time.

“Ignoring or misunderstanding the questionnaire could result in unnecessary complications, including lengthy disputes with SARS,” Theron said.

Wealthy taxpayers face the greatest risk

Theron explained that the people most likely to receive a declaration alert questionnaire are high-wealth individuals and taxpayers with multiple income streams, such as rental income, interest, and dividends.

The reason for this is that this group’s tax returns are generally more complex and prone to closer scrutiny from the revenue service.

Theron clarified that receiving a declaration alert does not automatically mean that something is wrong.

“However, taxpayers should take the alert seriously, review the information carefully and seek professional guidance if they are uncertain how to respond,” he said.

“Addressing potential issues before submission is generally far simpler than resolving a dispute after an assessment has been issued.”

Importantly, some of the information submitted to SARS by third-party data providers, such as medical aid funds or retirement savings, may contain errors.

“It is important to pay careful attention to the questionnaire and make sure that your return is accurate,” Theron said.

The 2026 Filing Season will officially kick off on 1 to 12 July for taxpayers who are being auto-assessed.

Non-provisional taxpayers must submit their returns between 13 July and 23 October, and provisional taxpayers and trusts will have until 22 January 2027.

SARS advised provisional taxpayers to start preparing their tax returns well in advance to avoid rushed and incomplete submissions.