SARS wants R50 billion more every year

SARS is ramping up tax debt collection through Project AmaBillions, aiming to recover up to R50 billion more annually by combining AI, legal enforcement, and 1,700 new hires.

Jashwin Baijoo, associate director and head of strategic engagement & compliance at Tax Consulting SA, said that after having great success with its specialised tax compliance programmes over the last few years, SARS has called in the cavalry.

As part of its broader strategy to boost revenue collection by an additional R70 Billion over the next three years, SARS has launched Project AmaBillions.

Baijoo explained that successfully collecting billions in outstanding tax revenue, be it disputed or undisputed tax debts, requires harmonising manpower and artificial intelligence (AI). Both are key items on SARS’ agenda.

The revenue authority’s recently published monthly collection data showed that R95 billion in outstanding taxes were collected for the 12-month period ending March 2025. 

“Although an impressive and unprecedented collection windfall, a staggering R422.6 billion in undisputed tax debts remains outstanding as at the end of May 2025,” Baijoo said. 

SARS is committed to making non-compliance difficult and costly, and it has the funds to achieve this goal.

Through an additional expenditure allocation of R7.5 billion over the medium term, SARS has onboarded around 1,700 new resources, from matriculants to seasoned tax and compliance experts.

With this improved capacity, Baijoo explained that SARS aims to raise R20 billion to R50 billion more annually.

“With a current debt book totalling over R530 billion, SARS’ assertive collection efforts do serve the best interests of the South African economy, even if the taxpayers finding themselves with a Civil Judgement against their names, do not think so,” he said.

“SARS’ debt book is currently comprised of all tax types, including personal and corporate income tax, as well as value-added tax and unpaid payroll taxes.”

This includes taxpayers who willfully avoid or evade paying their taxes, even though they can afford it. Baijoo warned that these taxpayers should not be surprised when SARS empties their bank accounts. 

A way out for South Africans

There may also be individuals who, due to unforeseen circumstances, simply cannot afford to settle their tax debt to SARS. Fortunately, Baijoo said there are legal tax debt relief mechanisms available. 

“Where a taxpayer is truly experiencing financial hardship, they may qualify for a compromise of tax debt,” he advised. 

This is where the taxpayer, who cannot afford to settle the entire amount, approaches SARS and asks for a write-off of interest and penalties attributed to the capital amount owed. 

The taxpayer then offers to settle, in part or in full, the capital amount owed to SARS, either by lump sum or instalment payments. When accepted by SARS, this proposal must be reduced to writing.

“The biggest attraction to a compromise is the write-off of interest and penalties,” Baijoo said. This is a lifeline afforded to taxpayers who are genuinely experiencing financial hardship but want to settle their debt and remain compliant moving forward.

It is also important to note that a compromise can be applied to any form of tax debt across all tax types, be it income tax, VAT, or PAYE, and regardless of whether it is for an individual, trust, or company. 

Baijoo said taxpayers who do not satisfy the requirements for a compromise but cannot afford to settle a tax debt in a lump sum payment still have the option to apply and enter into a payment arrangement with SARS. 

This is known as a deferral of payment, which allows taxpayers to enter a payment agreement with SARS. 

If a taxpayer’s application for this relief is granted, they will be able to settle the outstanding amount over time through monthly instalment payments. According to Baijoo, this is an attractive option to many taxpayers. 

It lessens the burden and reduces a large number that is expected to be settled immediately to one that is manageable and paid in monthly instalments, which is convenient for the taxpayer and SARS. 

Baijoo stressed that compliance remains the best strategy to protect South Africans from SARS. “Where you find yourself on the wrong side of SARS, there is a first-mover advantage.”