SARS to collect R500m from just 25 lifestyle audits
In the year to March 2022, the South African Revenue Service (SARS) completed 25 lifestyle audits, which flagged about R474 million in unpaid tax and other tax debts.
A SARS spokesperson told Fin24 on Friday that the organisation is currently following up with the taxpayers to collect the money.
SARS first launched lifestyle audits in 2007, but has in the past year ramped up its scrutiny of wealthy South Africans.
It established a High Net Wealth Unit last year, which has sent out pre-audit questionnaires to many wealthy South Africans.
According to one tax advisor, the questionnaires even include questions on how much they spend on specific groceries, like meat and vegetables.
SARS cross checks the answers from these questionnaires with other information. SARS has the power to review sources like the national administration traffic information system (NaTIS) to identify the owners of new expensive cars, as well as property registries, to find out who has been buying pricey homes.
While SARS does not give much information about how potential suspects are identified, South Africans are encouraged to alert it if they suspect that an individual is living above their means illegally, and not declaring some of their income to tax.
Where someone has not declared tax, SARS can charge up to an additional tax of up to 200% of the tax due on undisclosed income, plus interest. It may also refer the person to the National Prosecuting Authority for investigation.-Fin24
A SARS spokesperson told Fin24 on Friday that the organisation is currently following up with the taxpayers to collect the money.
SARS first launched lifestyle audits in 2007, but has in the past year ramped up its scrutiny of wealthy South Africans.
It established a High Net Wealth Unit last year, which has sent out pre-audit questionnaires to many wealthy South Africans.
According to one tax advisor, the questionnaires even include questions on how much they spend on specific groceries, like meat and vegetables.
SARS cross checks the answers from these questionnaires with other information. SARS has the power to review sources like the national administration traffic information system (NaTIS) to identify the owners of new expensive cars, as well as property registries, to find out who has been buying pricey homes.
While SARS does not give much information about how potential suspects are identified, South Africans are encouraged to alert it if they suspect that an individual is living above their means illegally, and not declaring some of their income to tax.
Where someone has not declared tax, SARS can charge up to an additional tax of up to 200% of the tax due on undisclosed income, plus interest. It may also refer the person to the National Prosecuting Authority for investigation.-Fin24
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