See More

Rich or not, Sars is coming for you

Apr 03 2013 11:40
woman with magnifying glass

Related Articles

Sars records 10% revenue rise

Gordhan warns against tax avoidance

Sars files for Malema bankruptcy

Sars taxpayer figures misleading - union

Ex-ConCourt judge to probe Sars scandal

Five steps to avoid tax risk

Cape Town - No one will be exempt from scrutiny, the South African Revenue Service (Sars) promised this week in its update on tax compliance.

In an update on Tuesday on its Compliance Programme for 2012-2017 which was launched by Finance Minister Pravin Gordhan, Sars undertook to "pursue non-compliant behaviour to ensure that every taxpayer pays the correct amount of tax".

Sars said it is now in a position to provide feedback on progress made across the five areas of the tax base identified as key focal points for the next five years.

The super rich is one of the seven key areas the taxman identified as "posing a specific risk to the work of Sars, to the fiscus, and ultimately to the economic future of South Africa".

"High Net-Worth Individuals (HNWIs) are under the spotlight around the world," said Sars.

"According to an OECD study they pose specific challenges to tax administrations as a result of the complexity of their tax affairs; their relative contribution to tax revenues; the opportunities that their wealth provides for aggressive tax planning and the impact that non-compliance in the HNWI segment can have on community confidence in the tax system."

So who falls in this category? Sars defines super wealthy individuals as South Africans whose gross income is at least R7m, with a gross wealth of R75m and higher.

It currently has 2 300 of these on its register, and their affairs have not escaped the taxman's notice. Over the last 12 months, 280 HNWIs have undergone compliance reviews and analysis.

The result? Of these, 109 have been identified as high risk and earmarked for a full audit.

Sars conducted 62 full audits, which yielded a total of R184m. Among HNWIs, 14 have been identified as potential serious offenders because of the magnitude of their outstanding returns.

Sars said four criminal cases involving the super rich are currently under investigation.
 - Fin24

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

sars  |  tax  |  sa economy  |  wealthy


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

This is the most expensive burger in the world!

You won't believe how much someone was prepared to pay for this burger!


Luxury living

Exclusive food items that WILL break the bank
Top 10 most expensive homes in the world
You can permanently live on a ship and sail the world!
These are the richest people on the planet!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How will you manage Vodacom’s price hike for contracts?

Previous results · Suggest a vote