Connect with us

411

SARS Targets South Africans With Outstanding Tax Debt in Major Collection Drive

Published

on

The South African Revenue Service (SARS) is stepping up its tax recovery efforts — and no one with unpaid taxes is being spared. In a bold new move dubbed Project AmaBillions, SARS is going after every cent of outstanding tax debt, regardless of the amount owed.

The initiative, according to insights from Tax Consulting SA, is part of a strategic response to the government’s budget shortfall, worsened by the reversal of the 1% VAT hike announced in April 2025. Instead of raising new taxes, SARS appears to be tightening the net around existing taxpayers.

What Is Project AmaBillions?

Project AmaBillions is believed to be a specialized campaign focused on recovering undisputed tax debt — essentially, the “low-hanging fruit” that doesn’t require prolonged legal battles.

SARS is reportedly hiring up to 500 new staff members to fuel this project, with plans to expand the workforce by up to 1,000 more. This recruitment drive is aimed at boosting SARS’ capacity to track down millions of rands in unpaid taxes that are already due.

A R70 Billion Goal to Fill a R75 Billion Hole

With a R75 billion shortfall projected by the National Treasury, SARS has its eyes on R70 billion in recoverable revenue. Experts say this could help fill the gap without introducing new tax burdens on an already struggling public.

“From Commissioner Edward Kieswetter’s recent remarks, it’s clear that SARS is laser-focused on compliance — especially uncollected debt,” said Keitumetse Sesana from the South African Institute of Taxation (SAIT).

Compliance Is No Longer Optional

The tax authority has already achieved significant success through compliance efforts. In the 2024/25 fiscal year, SARS generated R301 billion in revenue via interventions — a 16% increase year-on-year. This came largely from resolving over 5 million cases involving outstanding returns or tax verifications.

Sesana warns that even small amounts of unpaid tax won’t go unnoticed. “SARS will not let it go. Every rand counts toward the R2.006 trillion revenue goal for 2025/26.”

And while SARS is firm on collection, there’s room for honest taxpayers to negotiate. Jashwin Baijoo of Tax Consulting SA noted that SARS wrote off over R36 billion in taxpayer debt in the previous financial year, indicating a willingness to help those in genuine financial difficulty.

Why This Matters

This new approach signals a shift in strategy: instead of taxing the broader population more, SARS is targeting money already owed to the state.

Experts agree it’s the smarter move.

“For years, we’ve warned that introducing new taxes is not the solution,” said Sesana. “We must pursue the money that’s already due. Non-compliant taxpayers must be held accountable.”

What You Should Do Now

If you owe SARS any amount — even a small one — now is the time to act. Update your details, settle your debt if you can, or reach out to SARS for a payment arrangement.

With Project AmaBillions now underway, the message is clear: unpaid tax is no longer something you can afford to ignore.

{Source: BusinessTech}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com