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Pretoria - Some 200 superrich South Africans will receive great attention from the taxman this year.
These individuals have been identified for tax non-compliance.
On Friday SA Revenue Service commissioner Oupa Magashula said that the revenue office had been struggling with several “compliance challenges” from high-income earners.
Magashula referred to certain people who owned luxury aircraft worth around R20m, but who had declared income of R1m a year.
How could anyone afford an aircraft such as that on that income, he asked at a news conference in Pretoria.
Around 50 people with such inconsistencies between their assets and declared income have been identified.
In the past year Sars has identified 2 800 individuals fitting the criteria of high-income earners.
These would be people with gross incomes of R7m a year and with assets worth more than R75m.
But only 360 such individuals in that income category are registered with the tax office.
SARS is increasingly using third-party information to compare what people declare in their returns with information from banks, insurance institutions and the Deeds Office.
Magashula referred to people driving Lamborghinis and Ferraris who declared gross incomes of less than R350 000.
PwC tax partner Charles de Wet said high-income earners were sure to land in the spotlight sooner or later.
Ordinary salaried employees and companies had had their turn, he said. Now it was the turn of the possible dodgers, he said.
He said it was astonishing that people could earn so much money but not consider it necessary to meet their tax obligations.
- Sake24.com
For business news in Afrikaans, go to www.sake24.com.
These individuals have been identified for tax non-compliance.
On Friday SA Revenue Service commissioner Oupa Magashula said that the revenue office had been struggling with several “compliance challenges” from high-income earners.
Magashula referred to certain people who owned luxury aircraft worth around R20m, but who had declared income of R1m a year.
How could anyone afford an aircraft such as that on that income, he asked at a news conference in Pretoria.
Around 50 people with such inconsistencies between their assets and declared income have been identified.
In the past year Sars has identified 2 800 individuals fitting the criteria of high-income earners.
These would be people with gross incomes of R7m a year and with assets worth more than R75m.
But only 360 such individuals in that income category are registered with the tax office.
SARS is increasingly using third-party information to compare what people declare in their returns with information from banks, insurance institutions and the Deeds Office.
Magashula referred to people driving Lamborghinis and Ferraris who declared gross incomes of less than R350 000.
PwC tax partner Charles de Wet said high-income earners were sure to land in the spotlight sooner or later.
Ordinary salaried employees and companies had had their turn, he said. Now it was the turn of the possible dodgers, he said.
He said it was astonishing that people could earn so much money but not consider it necessary to meet their tax obligations.
- Sake24.com
For business news in Afrikaans, go to www.sake24.com.
