In what is increasingly being considered a watershed year for the evolution of cryptocurrency regulation in South Africa, the South African Revenue Service (SARS) is quietly but meticulously accreting the details of South Africans invested in crypto assets with a view to dropping the hammer on tax non-compliance.
There is developing trend where tax practitioners and taxpayers alike cry “fear-mongering” where media releases caution against non-compliance, despite numerous statements by the South African Revenue Service (“SARS”) noting a zero-tolerance approach to any form of, wilful or negligent, non-compliance.
Cryptocurrency has been gaining momentum in South Africa and the South African government has made it clear, in the 2022 Budget Speech, that they are taking it very seriously.
It is clear from Finance Minister Enoch Godongwana’s 2022 Budget Speech is that SARS will strongly enforce the law against wealthy taxpayers. In order to detect non-compliance or fraud, especially with the existence of unexplained wealth, it is proposed that all provisional taxpayers with assets above R50 million be required to declare specified assets and liabilities […]
The question of “Selective Prosecution” has been asked since 2007 when the South African Revenue Service (“SARS”) started using Lifestyle Audits on private individuals. The selection basis, was the means of the individual, in contrast to their standard of living, and was conducted on individuals where there was a suspicion of criminal activity.
From the taxpayer’s perspective, the 2022 Budget Review may have been received relatively well. Tax rates were not increased, the tax brackets and rebates for personal income tax were adjusted for inflation, fuel and RAF levies both remain unchanged for the first time in more than 30 years and the corporate tax rate is set […]
In a recent Tax Court Judgment handed down on 25 February 2022, the Court found in favour of an unnamed taxpayer, admonishing SARS for their persistent disregard for the time limits prescribed in the rules promulgated under Section 103 of the Tax Administration Act, 28 of 2011 (“the Rules”). The Court further confirmed that SARS’ […]
The Budget Review 2022 was far from a “good news” budget for South Africans working abroad (“expats”). For the 5th consecutive year, there has been changes proposed that clearly indicate that SARS is still targeting expats and view them as low-hanging fruit to boost revenue collection.
The Budget 2022 announced a new tax disclosure for wealthy taxpayers. This is part of SARS’ High Wealth Individual strategy and where a dedicated unit is now operating within SARS to focus on these taxpayers.
The Minister of Finance, Enoch Godongwana, delivered his maiden Budget Speech this afternoon. Discussed below are 10 key highlights from the 2022 Budget Review.