No One Above the Law: SARS Recoups R107m from Politically Connected Figures

In a powerful demonstration of its renewed mandate, the South African Revenue Service (SARS) has confirmed it is actively holding the country’s most influential figures to account, collecting more than R100 million from politicians and other high-profile individuals for tax noncompliance.

Finance Minister Enoch Godongwana revealed that in the three years from 2022 to 2025, SARS identified 105 cases of potential tax noncompliance by Politically Exposed Persons (PEPs). This group includes everyone from the President and ministers to provincial leaders, mayors, and even their family members and close associates.

Audits, Assessments, and Accountability

Of these 105 cases, 29 were escalated to a full audit. The result was additional tax assessments totalling a massive R107 million, followed by successful debt collection efforts. This tangible financial recovery signals a significant shift towards enforcing tax laws without fear or favour.

“The figures demonstrate SARS’ continued commitment to evidence-based, risk-driven compliance interventions, ensuring that all taxpayers, regardless of their public standing, are held to the same standards of accountability,” Godongwana stated in a written parliamentary reply.

The minister outlined a meticulous process. A dedicated unit within SARS now focuses on prominent individuals, aiming to drive voluntary compliance while rigorously pursuing those who falter. A risk-based methodology is used to select cases for audit objectively.

“If noncompliance is detected, SARS applies all available legal and administrative tools to make noncompliance hard and costly,” Godongwana affirmed.

A Broader Crackdown with Global Backing

This heightened scrutiny is not happening in a vacuum. It is a key requirement of the global Financial Action Task Force (FATF), which greylisted South Africa in 2023 due to weaknesses in its systems for combating financial crime like money laundering. The enhanced monitoring of PEPs, whose positions make them vulnerable to corruption, was a critical part of the country’s action plan to get off the grey lista goal it successfully achieved last month.

The work, however, is far from over. The minister’s reply indicates that 24 cases are still under audit, awaiting final documentation, and a further 52 cases are in the profiling stage, pending analysis and potential selection for audit.

The message from SARS is clear and unequivocal: the era of impunity is over. Whether you are an ordinary citizen or a person in a position of high office, the taxman is watching, and no one is above the law.

{Source: BusinessDay}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com