SARS Knows More About You than You Think.

SARS KNOWS MORE ABOUT YOU THAN YOU THINK…

I read an article in the SAIPA Tax Professional Journal regarding the roll out of the SMART COLLECTION SYSTEM by SARS and it got me thinking about how much SARS already knows about us. Quite simply:?It's More than you think.

The South African Revenue Service (SARS) has implemented a new Smart Collection System which leverages Artificial Intelligence (AI) to identify false submissions and detect tax evasion. SARS is utilizing AI-driven technology to automatically process the large amounts of data associated with the filing of individual and corporate taxes. The AI software is able to investigate suspicious patterns in submitted taxes, allowing SARS to assess the accuracy of submissions and identify any discrepancies. SARS has made it clear that taxpayers must act in accordance with their reporting duties or face criminal charges for non-compliance.

The article quoted Mr. Mohomed Kamdar, Tax Specialist at the South African Institute of Professional Accountants as saying:?“SARS will soon become so efficient at detecting tax evasion and recovering hidden revenues, it will no longer be worth it to lie on returns.” Current job postings from SARS seemingly indicate this as the end goal.

In addition to its automated processes, SARS also collects a vast amount of data from various sources, including financial institutions, rental agreements and other forms of income. SARS already has more information than you may think about your income streams and spending habits, and this data is used to assess the accuracy of tax returns.

By utilizing AI-driven technology to detect false submissions and identify tax evasion, SARS is advancing its efforts in keeping the system fair for all taxpayers. SARS has made it clear that any attempts at avoiding taxes will not be tolerated, and those found guilty of such offences can face serious penalties.

So what can we do? SARS encourages taxpayers to be honest and forthright in their tax submissions. SARS also recommends that taxpayers compile accurate records of their income, spending and transactions to ensure they are compliant with any taxation obligations. By following SARS’ guidelines and staying up-to-date on changes in the tax system, taxpayers can remain in good standing and avoid any unpleasant interest from SARS .. So be sure to comply with SARS’ requirements and stay on top of your taxes! SARS will be watching!