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Pretoria – At least 50% of cash and carry businesses inspected by the SA Revenue Service (Sars) are found to be non-compliant with regard to registration, filing or payment.
There is a significant risk of under declaration due to poor record keeping and high volumes of cash transactions in this sector.
Several audited cases concluded by Sars in the cash and carry sector have resulted in assessments raised in the past financial year already totalling more than R600m.
Sars said in a statement on Wednesday its crackdown on non-compliance has resulted in on-site inspections of over 100 cash and carry businesses in Gauteng over the last month.
The crackdown is part of a new focused approach, launched in December 2015, to combat non-compliance in several sectors.
On-site inspectors perform compliance checks to identify registration and filing non-compliance. They then flag any suspicious businesses.
Registrations are now being conducted as well as follow-ups on outstanding returns. The collection of outstanding debt is also taking place and further risk profiling for full audits where there is evidence of under-declaration. Outstanding debts are also collected. Relevant penalties are being applied where applicable.
"Where there is evidence of gross negligence and/or intentional tax evasion, Sars will institute criminal investigations that may lead to criminal prosecution," said Sars.
“Sars is closing in on those who under-declare on their tax liability, both individuals and companies. We encourage all taxpayers to ensure their affairs are in order and they are contributing their fair share towards the cost of running the country,” said Sars commissioner Tom Moyane in the statement.
