{"id":9379,"date":"2025-04-23T17:00:00","date_gmt":"2025-04-23T15:00:00","guid":{"rendered":"https:\/\/dotnewsconnect.co.za\/acc\/?p=9379"},"modified":"2025-04-24T10:19:04","modified_gmt":"2025-04-24T08:19:04","slug":"mind-the-tax-gap-heres-how","status":"publish","type":"post","link":"https:\/\/dotnewsconnect.co.za\/acc\/2025\/mind-the-tax-gap-heres-how\/","title":{"rendered":"Mind The Tax Gap! Here\u2019s How\u2026"},"content":{"rendered":"\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cIn 2025\/26, SARS will focus on addressing the tax gap to improve revenue collection.\u201d (National Treasury Budget Review)<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">With additional funding from National Treasury, SARS will now be better positioned than ever to collect the estimated R800 billion in unpaid taxes which SARS Commissioner Edward Kieswetter has identified as a better alternative than a VAT hike to balance the South African Budget.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Much of the estimated R800 billion in unpaid taxes consists of the so-called \u201ctax gap\u201d \u2013 the difference between how much tax is legally due to SARS and the amount that is actually paid on time. SARS has reported the following:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Just over R400 billion in undisputed uncollected debt<\/li>\n\n\n\n<li>Over R100 billion in debt currently under dispute<\/li>\n\n\n\n<li>More than 54 million outstanding returns dating back several years<\/li>\n\n\n\n<li>156,000 South Africans with substantial economic activity who are not registered taxpayers, or are not filing their tax returns.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The remainder of the R800 billion unpaid taxes is made up by \u201caggressive tax planning\u201d such as base erosion, transfer pricing, and other means of tax evasion, as well as unpaid excise duties, unpaid VAT, and illicit trade flows.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Kieswetter said R2 billion of the additional R2.5 billion that SARS will receive for 2025\/26 will be used for \u201ca massive debt recovery programme\u201d, while R500 million will be used to modernise SARS\u2019 systems.&nbsp; &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Given SARS\u2019 enhanced capabilities and focus on collecting outstanding debt, our tax expertise will be crucial in ensuring you and your business maintain complete compliance and react immediately and correctly should your tax affairs become the subject of SARS\u2019 scrutiny.&nbsp;<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">Tax compliance tick box&nbsp;<\/h6>\n\n\n\n<p class=\"wp-block-paragraph\">Maintaining compliance starts with:<br><br>\u2714 Being registered for all applicable tax types within the stipulated time frames <br>\u2714 Making accurate declarations <br>\u2714 Filing returns and other required documentation on time <br>\u2714 Paying the correct amount of tax on time <br>\u2714 Promptly responding to SARS communications <br>\u2714 Paying penalties and interest for non-compliance, such as late submissions or under-declared income.<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">How we can help you mind the tax gap&nbsp;&nbsp;<\/h6>\n\n\n\n<p class=\"wp-block-paragraph\">We can help you to comply with your specific tax obligations with up-to-date tax expertise and best practices.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>We promptly and professionally respond to communications from SARS, such as notices of demand for unfiled returns, requests for information, or notifications of penalties levied.<\/li>\n\n\n\n<li>We take immediate and correct action following demands for outstanding tax debts. Taxpayers have ten business days after receiving a Final Demand to either pay, arrange deferral of payment or make a payment arrangement, file a suspension of payment with an objection, or enter into a compromise agreement.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">What\u2019s more, our expertise and experience enable us to monitor that SARS is following the correct legal procedures. This ensures that your taxpayer rights are protected and preventing illegal collection measures such as unauthorised SARS withdrawals from bank accounts.&nbsp;<\/p>\n\n\n\n<h6 class=\"wp-block-heading\">Bottom line<\/h6>\n\n\n\n<p class=\"wp-block-paragraph\">SARS says it will be relentless in its efforts to collect the billions of rands in uncollected taxes, and that it is ready to act against those who wilfully and defiantly ignore their legal tax obligations.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Similarly, we will be relentless in ensuring you maintain complete tax compliance in all your affairs. And we are ready to take the proper and timely action when SARS\u2019 spotlight shines on your tax affairs.&nbsp;<\/strong><\/p>\n\n\n\n<p style=\"border-top: 1px solid #dedfe0!important;padding-top: 20px!important;margin-top: 20px!important\"><strong>Disclaimer:<\/strong>\u00a0The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.<\/p>\n<p style=\"text-align: right\">\u00a9 AccountingDotNews<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cIn 2025\/26, SARS will focus on addressing the tax gap to improve revenue collection.\u201d (National Treasury Budget Review) With additional funding from National Treasury, SARS will now be better positioned than ever to collect the estimated R800 billion in unpaid taxes which SARS Commissioner Edward Kieswetter has identified as a better alternative than a VAT [&hellip;]<\/p>\n","protected":false},"author":101015,"featured_media":9380,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[6],"tags":[],"class_list":["post-9379","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mind The Tax Gap! 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