Taxpayers owe SARS over R500 billion, warns Deputy Commissioner Johnstone Makhubu
Image: Freepik
The South African Revenue Service (SARS) says taxpayers now owe the government just over R513 billion in unpaid taxes.
The figure was revealed by Deputy Commissioner Johnstone Makhubu, who was speaking at the 12th annual Tax Indaba on Monday.
Makhubu also warned that the ballooning tax debt poses a major concern for the fiscus but also presents opportunities for improved recovery and enforcement.
"I think the growing tax debt we are sitting with around, as at the end of the financial year last year, we are sitting at around R513 billion of monies that are owed to the fiscus by taxpayers,' Makhubu said.
'And again, if you are sitting with a balance sheet like that, any shareholder will ask you: what are you doing to leverage that balance sheet? And how much of that balance sheet should you be writing off?'
IOL previously reported that the revenue service announced its intention to use artificial intelligence (AI) and data analytics to help achieve the revised revenue target of R1.986 trillion in taxes for the 2025/26 financial year set by Finance Minister Enoch Godongwana earlier this year.
Godongwana allocated R7.5 billion over the next three years to enhance SARS's revenue collection capabilities and modernise its systems.
Makhubu added that the revenue service has not had substantial write-offs of tax debt in the past, but acknowledged that some level of write-offs may be necessary.
"SARS has, over the years, not had substantial write-offs of its debt book. However, I think even if we allowed for some substantial write-offs of the debt book, we are of the view that there is still an opportunity in there, like our colleagues are telling us globally, that we can be able to leverage that".
He also addressed challenges related to the rapid growth of e-commerce, adding that SARS began charging VAT on low-value goods imported through e-commerce platforms last year.
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