SARS Seizes R155 Million from Single Taxpayer as Crackdown on Defaulters Intensifies

South Africans are watching closely as the South African Revenue Service (SARS) flexes its legal muscle again this time by hitting a single taxpayer with a staggering R155 million sequestration order. The move, confirmed by the North Gauteng High Court, signals SARS’s growing resolve to clamp down on individuals and businesses that fail to meet their tax obligations.

Another Big Win For The Taxman

The order allows SARS to seize the taxpayer’s assets to recover long-overdue debts. According to Tax Consulting SA, the individual at the centre of the case was the sole director of a company that carried the tax burden in question.

When the debt went unpaid, SARS acted swiftly, placing the taxpayer’s estate under external administration. The consulting firm described the case as “a reminder of SARS’s far-reaching powers and its zero-tolerance approach to non-compliance.”

This latest victory adds to a string of headline-making wins for SARS in 2025. Earlier this year, the agency clawed back R40 million through the Supreme Court of Appeal over unlawful tax rebates and recovered another R30 million from a taxpayer accused of creative accounting. In October, SARS successfully invoked its General Anti-Avoidance Rules to secure R46 million from a foreign-income tax evasion scheme.

Commissioner Kieswetter’s Hardline Message

SARS Commissioner Edward Kieswetter has repeatedly warned that the agency will not hesitate to act against anyone who flouts the law. Responding to the latest judgment, he reaffirmed this stance with characteristic bluntness.

“Where taxpayers opt to wilfully disregard their obligations by acting outside the remit of the law, SARS will make it hard and costly,” Kieswetter said. “We will continue to act lawfully and decisively against those who deliberately seek to evade or neglect their tax responsibilities. No matter how long it takes, we will not abdicate our responsibility to enforce the law.”

Social media users have largely applauded the move, with some calling it a “wake-up call” for high-income earners who use loopholes to dodge tax. Others, however, have questioned whether SARS applies the same energy to politically connected figures.

Compliance Push Paying Off

Behind the headlines, SARS’s crackdown seems to be paying real dividends. According to its 2024/25 Annual Report, released on 30 October 2025, the agency collected a record R1.855 trillion in net revenue over the past financial year. Personal income tax led the pack at R733.2 billion up 12.6% from the previous year.

Under Kieswetter’s leadership, SARS has undergone a digital and structural overhaul. New measures such as Crypto-Asset Reporting regulations and expanded Common Reporting Standards (CRS) frameworks have strengthened its ability to trace undeclared income and offshore wealth.

A Warning To All Taxpayers

Tax Consulting SA says the R155 million sequestration sends a strong message: SARS is prepared to use every legal tool available from salary attachments to direct bank deductions to collect what’s owed.

“No taxpayer, regardless of their economic standing, is beyond reach,” the firm warned, adding that SARS is now also revisiting historical non-compliance cases and even asking some taxpayers to declare future income projections.

As the festive season approaches and many South Africans prepare for year-end tax submissions, this case serves as a reminder that SARS’s reach is both long and unrelenting. Whether you’re a major business owner or an individual filer, one thing is clear the taxman is watching.

{Source:The South African}

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