SARS Is Sharpening Their Tools To Improve Detection Of Crypto Tax Non-Compliance
In what is increasingly being considered a watershed year for the evolution of cryptocurrency regulation in South Africa, the South African Revenue Service (SARS) is quietly but meticulously accreting the details of South Africans invested in crypto assets with a view to dropping the hammer on tax non-compliance.
The Good, the Bad, and the Negligent: SARS’ Compliance Crackdown
There is developing trend where tax practitioners and taxpayers alike cry “fear-mongering” where media releases caution against non-compliance, despite numerous statements by the South African Revenue Service (“SARS”) noting a zero-tolerance approach to any form of, wilful or negligent, non-compliance.
Government Is Putting Crypto Under The Magnifying Glass
Cryptocurrency has been gaining momentum in South Africa and the South African government has made it clear, in the 2022 Budget Speech, that they are taking it very seriously.
Hell Hath No Fury Like A Tax Collector Scorned
It is clear from Finance Minister Enoch Godongwana’s 2022 Budget Speech is that SARS will strongly enforce the law against wealthy taxpayers. In order to detect non-compliance or fraud, especially with the existence of unexplained wealth, it is proposed that all provisional taxpayers with assets above R50 million be required to declare specified assets and liabilities […]
Lifestyle Audits: SARS Answers the Question of Selective Prosecution, with a Resounding “NO”
The question of “Selective Prosecution” has been asked since 2007 when the South African Revenue Service (“SARS”) started using Lifestyle Audits on private individuals. The selection basis, was the means of the individual, in contrast to their standard of living, and was conducted on individuals where there was a suspicion of criminal activity.