According to their latest annual report, the South African Revenue Service (Sars) has permanently, or temporarily, written off taxpayer debt to the value of R36.15 billion for the 2023/24 financial year.
Sars noted that the revenue losses for the 2023/24 FY amounted to R36.15 billion, which is net of reinstatement and recoveries of R1.48 billion.
The increase over the prior year is due to compromises and permanent write-offs.
"Compromised write-offs relate to agreements with taxpayers for Sars to forgo a portion of the tax debt, provided that doing so would secure the highest net return from the recovery of the debt. Temporary write-offs are the current year’s write-offs that are uneconomical to pursue."
Tax Consulting SA noted that this may come as a shock to many taxpayers, especially those who have felt the wrath of Sars over non-compliance.
Over the last year, Sars has been coming down hard on wealthier taxpayers and trusts as it seeks to maximise its revenue.
The consulting firm said that Sars Commissioner, Edward Kieswetter made it clear that the revenue service has strategic objectives to drive growth, and as such, tax collection.
Despite the stricter enforcement on non-compliant taxpayers, including hefty fines and stints behind bars, Sars is committed to helping taxpayers who seek voluntary compliance, trying to make it easy, the consulting firm said.
“For those who are early adopters of the correct legal compliance approach, and simply cannot afford to settle their entire tax liability in one shot, options like debt compromises and deferrals remain available,” the firm said.
IOL Business has approached Sars to get clarity and detail on the tax write-offs, and this will be added once received.
New infrastructure
Earlier this month, Sars announced facial recognition may be a requirement for new e-Filing registrations for personal income tax.
“Biometric facial recognition authentication is being introduced for all individuals who register for e-Filing using a valid South African ID,” Sars said in a statement.
The facial recognition tool will help authenticate taxpayers and protect the information of taxpayers from profile hijacking and identity fraud.
Photos captured will be matched in real-time against the applicable reference data and the system will immediately provide the outcome of the biometric authentication.
IOL BUSINESS