HIGH NET WORTH INDIVIDUALS NO. 1 ON SARS’ HITLIST
Following SARS’ media release on 5 May 2020, it is clear that SARS will target high net worth individuals to make up the revenue shortfall.
MORE INFORMATION
All tax types are underperforming as a result of the pandemic, but some will be under more pressure than others. Businesses are collapsing, with more to follow, and those who manage to stay afloat may report losses for the foreseeable future, which means corporate income tax will fall sharply. The contraction in the economy and the restriction of many activities mean less transactions which impacts heavily an VAT. The same rationale applies to imports and exports where customs revenue will see a significant drop, not to mention the loss in excise duties from the prohibition on sales of alcohol and tobacco.
This leaves us with personal income tax where we will see a decline but perhaps not as piercing. The over-taxed minority will potentially face an even heavier burden this season, as SARS will have to extract all it can from those with the means to contribute. SARS will no longer shut its eyes to trust structures, rental properties and offshore assets.
If you are someone with a potential exposure it is critical to regularise your tax affairs before SARS clamps down. Our multidisciplinary team of tax attorneys, assisted by chartered accountants, has a proven track record of following a strict legal and compliant approach with solution-based thinking to help correct your past non-compliance.