Africa-Press – South-Africa. The South African Revenue Service (SARS) is reportedly gearing up for an aggressive revenue recovery drive, targeted at any and all South Africans with tax debt—no matter how small.
According to Tax Consulting SA, this drive aims to soften the budget shortfall created by the VAT hike’s reversal.
Citing sources close to the move, Tax Consulting said that the Revenue Service is rolling out what it has internally dubbed “Project AmaBillions”.
It said that this is a specialised campaign aimed squarely at collecting outstanding tax debt.
The company said that SARS is believed to be recruiting up to 500 new employees to support the initiative, with a potential for another 500 to 1,000 additional hires later.
This drive will focus on low-hanging fruit like undisputed tax debt, which appears to be SARS’ strategy for bolstering revenues without implementing new taxes.
“Reliable information shows that SARS plans to or has already started recruiting. For now, SARS has neither confirmed that work on such a project is underway nor provided any detailed information,” the firm said.
“But with revenue collection under pressure, it should come as no surprise that the taxman is stepping up efforts.”
The estimated R70 billion targeted through this effort is especially notable against the R75 billion revenue shortfall the National Treasury has forecast over the medium term.
This gap came after Finance Minister Enoch Godongwana announced on 24 April that the proposed 1% VAT increase would be scrapped.
The figures suggest Project AmaBillions could be a crucial lever in offsetting the hole left by the VAT decision, and it may even be a strategic response to avoid taxing the broader public further.
Keitumetse Sesana, Strategic Lead for Stakeholder Engagement and Legislation at the South African Institute of Taxation (SAIT), said she is unaware of a formal project being launched.
However, she added that SARS’ recent public statements make it clear the agency is ramping up its focus on uncollected debt.
“From the strategic pillars Commissioner Edward Kieswetter referred to during the preliminary Revenue Collection Announcement on 1 April 2025, it is clear that uncollected tax debt is a focus area,” she said.
Going after the money already in the system to avoid additional taxes
SARS Commissioner Edward Kieswetter (left) with Finance Minister Enoch Godongwana (right).
According to Sesana, SARS Commissioner Edward Kieswetter has stressed the importance of a dedicated Compliance Programme to pursue tax debt outside the usual revenue collection processes.
This includes tracking down more than 5 million outstanding returns and going after individuals above the income threshold who are not even registered for tax.
She noted that SARS has received an additional R7.5 billion allocation from the National Treasury to bolster these efforts.
Additionally, a further R1.5 billion has been recommended by the Standing Committee on Finance to support the hiring of 2,338 additional staff.
“These are the easy wins SARS is going for to help close the tax gap of around R800 billion,” Sesana said.
In 2024/25, SARS’ compliance interventions generated R301 billion in revenue, up nearly 16% year-on-year.
These results were driven mainly by resolving 1.7 million verification cases and more than 3.7 million outstanding tax and return cases.
Jashwin Baijoo, Associate Director and Head of Strategic Engagement & Compliance at Tax Consulting SA, agreed that this focused recovery effort aligns with SARS’ stated compliance themes.
“What we have seen in practice is SARS increasing its collection drive on outstanding tax debts, in an effort to eradicate tax non-compliance,” Baijoo said.
“That being said, SARS remains open to discussions on payment arrangements and tax debt write-offs where taxpayers face financial hardship.”
Baijoo pointed to SARS’ latest annual report, which showed R36.15 billion in taxpayer debt was written off in the 2023/24 financial year.
He explained that this reflects SARS’ willingness to work with taxpayers who are honest about their financial situation.
Still, SARS’ message to the broader public is becoming increasingly clear. Sesana warned that even small amounts of unpaid tax will not be ignored this filing season.
“Taxpayers should not negate the fact that their tax debt may be minimal. SARS will not let it go, because it has to end up in the state coffers,” she said.
“To collect R2.006 trillion in the 2025/26 fiscal year, every rand counts. Make sure your details at SARS are correct.”
Ultimately, the experts agreed that going after money already owed is a far better alternative to introducing new taxes in a strained economy.
“We welcome any such projects undertaken by SARS,” Sesana said. “For many years, the SAIT has said introducing new taxes is not a good way to strengthen the state coffers.”
“We must go after the money in the system, which is owed to the fiscus but not reaching SARS. Non-compliant taxpayers must be made to pay their fair share.”
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