{"id":94465,"date":"2025-12-19T17:00:42","date_gmt":"2025-12-19T17:00:42","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-coming-after-south-african-taxpayers-for-millions"},"modified":"2025-12-19T17:38:25","modified_gmt":"2025-12-19T17:38:25","slug":"sars-coming-after-south-african-taxpayers-for-millions","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-coming-after-south-african-taxpayers-for-millions","title":{"rendered":"SARS coming after South African taxpayers for millions"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>SARS is intensifying its crackdown on tax evasion and non-compliance, using strengthened powers and partnerships with IDAC to pursue taxpayers for millions and enforce serious criminal consequences.<\/p>\n

On 9 December 2025, the Investigating Directorate Against Corruption (IDAC), in collaboration with SARS and other law-enforcement agencies, released a hard-hitting joint media statement.<\/p>\n

They announced a significant legal victory: a six-year direct prison sentence with two years suspended for Tshepo Khoza, director of Grey Apple Trading Enterprise, on multiple counts of fraud and tax evasion amounting to roughly R3.6 million.<\/p>\n

Khoza\u2019s company had received tenders from the South African Police Service (SAPS) under the DNA project for its forensic science laboratory (FSL).<\/p>\n

These tenders were allegedly awarded because of his family ties to a senior SAPS official, explained Tax Consulting SA\u2019s Partner and Head of Strategic Engagement & Compliance, Jashwin Baijoo.<\/p>\n

Between 2015 and 2018, despite earning substantial income from these contracts, Khoza declared his company dormant and failed to register for VAT or declare the revenue to SARS.<\/p>\n

\u201cThis verdict comes after protracted investigations under what\u2019s known as Project Blue Lights,\u201d Baijoo explained.<\/p>\n

He said it marks one of the clearest signals so far that the state means business when it comes to cracking down on procurement-related corruption and tax evasion.<\/p>\n

\u201cThe leadership of both SARS and IDAC did not mince words. SARS Commissioner Edward Kieswetter framed tax fraud not as a victimless crime, but as direct theft from the national fiscus.\u201d<\/p>\n

By extension, it amounts to theft from every South African who depends on government services for education, healthcare, and social support. Now, SARS is leveraging its powers under the Tax Administration Act (TAA).<\/p>\n

The Tax Administration Act<\/b><\/p>\n

The TAA provides for instances in which the Directors, Public Officers, or other representative taxpayers can be held personally liable for a company\u2019s tax debt, as well as other forms of non-compliance, Baijoo explained.<\/p>\n

Section 180 of the TAA empowers SARS to hold third parties personally responsible for a company\u2019s tax debt and other non-compliance if:<\/p>\n

The person \u201ccontrols or is regularly involved in the management of the overall financial affairs of a taxpayer\u201d; and<\/p>\n

SARS determines that the person acted negligently or fraudulently concerning the taxpayer\u2019s tax debt.<\/p>\n

\u201cWhere a tax debt exists, this would include liability for capital sums due, as well as related penalties and interest,\u201d Baijoo explained. \u201cHolding an official financial title within the company is not necessary.\u201d<\/p>\n

\u201cMerely being involved in financial decisions can make an individual a target. Directors, shareholders, financial officers, and even informal advisors can be held liable if their actions, or inaction, contribute to tax non-compliance.\u201d<\/p>\n

Baijoo said that SARS\u2019 collection arsenal is not limited to section 180. For example, sections 153 to 155 of the TAA impose personal liability on a \u201crepresentative taxpayer\u201d.<\/p>\n

This refers to any person responsible for managing the company\u2019s tax affairs, including public officers, who may be held personally accountable for the company\u2019s unpaid income tax.<\/p>\n

\u201cThe threat of personal liability extends beyond financial penalties. SARS has the power to initiate criminal proceedings against individuals controlling non-compliant companies.\u201d<\/p>\n

\u201cThis means that merely paying a fine may not be enough: offenders could face criminal charges and even imprisonment.\u201d<\/p>\n

According to Baijoo, the significance of this conviction lies as much in the outcome as in how it was achieved.<\/p>\n

\u201cOver recent years, the state has bolstered its anti-corruption architecture \u2013 notably by cementing IDAC\u2019s status as a permanent, fully empowered institution with criminal investigatory and prosecutorial powers.\u201d<\/p>\n

\u201cBy working hand-in-glove, SARS and IDAC (alongside other law-enforcement partners) are systematically dismantling networks that abuse public procurement for personal enrichment.\u201d<\/p>\n

This is turning what was often a murky, difficult-to-prosecute domain into one where accountability is real, immediate, and public.<\/p>\n

\u201cThis joint victory signals more than just a single arrest \u2013 it suggests a new paradigm in which corruption is not a tolerated cost of doing business, but a liability with severe consequences.\u201d<\/p>\n

Taxpayers rack up criminal charges<\/b><\/p>\n

Section 234 of the TAA outlines the acts and omissions which SARS consider as criminal offences, relating to non-compliance with tax Acts, Baijoo said.<\/p>\n

This section further states that any person who wilfully commits one of the listed acts, or wilfully\/negligently fails to act, may be liable, upon conviction, to a fine, or imprisonment of up to two years.<\/p>\n

\u201cThis is only the tip of the iceberg, however, as Section 235 of the TAA goes even further, speaking to tax evasion and obtaining undue refunds through fraud or theft. This comes with a 5-year potential imprisonment.\u201d<\/p>\n

While Khoza\u2019s sentence is a blow against a single corrupt actor, Baijoo noted that his wider corruption trial, involving others, is scheduled to resume in February 2026.<\/p>\n

\u201cEvery delay in the prosecution of high-profile corruption cases risks giving rise to cynicism, disillusionment, and impunity. The public deserves \u2013 and demands \u2013 swift, transparent follow-through.\u201d<\/p>\n

Baijoo said that SARS has had to become more aggressive in its efforts to combat the criminal elements in South Africa\u2019s society, leveraging the joint resources of its law enforcement partners.<\/p>\n

\u201cTaxpayers need to be aware that even non-compliance on a smaller scale and due to negligence carries with it the potential of criminal conviction. Crime literally does not pay.\u201d<\/p>\n

Where taxpayers are already on the wrong side of the law, Baijoo warned that their only reprieve is to correctly and legally engage the revenue authority.<\/p>\n

\u201cCommission of any further criminal activity will not sweep prior acts under the rug, but rather exacerbate the already severe consequences.\u201d<\/p>\n

\u201cAs a rule of thumb, any and all correspondence received from SARS should be immediately addressed by a strong multi-faceted tax, legal, and financial team.\u201d<\/p>\n

This will not only settle a taxpayer\u2019s matter before a tax inquiry is opened, but also, as specialists in their own right, they will be correctly advised on the most appropriate solution to ensure holistic tax compliance.<\/p>\n

For More News And Analysis About South-Africa<\/span> Follow Africa-Press<\/span><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. SARS is intensifying its crackdown on tax evasion and non-compliance, using strengthened powers and partnerships with IDAC to pursue taxpayers for millions and enforce serious criminal consequences. On 9 December 2025, the Investigating Directorate Against Corruption (IDAC), in collaboration with SARS and other law-enforcement agencies, released a hard-hitting joint media statement. They […]<\/p>\n","protected":false},"author":84,"featured_media":94464,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[275],"class_list":["post-94465","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-south-africa-2"],"yoast_head":"\nSARS coming after South African taxpayers for millions - South Africa<\/title>\n<meta name=\"description\" content=\"SARS is intensifying its crackdown on tax evasion and non-compliance, using strengthened powers and partnerships with ID ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-coming-after-south-african-taxpayers-for-millions\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SARS coming after South African taxpayers for millions\" \/>\n<meta property=\"og:description\" content=\"SARS is intensifying its crackdown on tax evasion and non-compliance, using strengthened powers and partnerships with ID ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-coming-after-south-african-taxpayers-for-millions\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2025-12-19T17:00:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-19T17:38:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2025\/12\/sm_1766153121.521042.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"668\" \/>\n\t<meta property=\"og:image:height\" content=\"384\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-coming-after-south-african-taxpayers-for-millions#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-coming-after-south-african-taxpayers-for-millions\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"SARS coming after South African taxpayers for millions\",\"datePublished\":\"2025-12-19T17:00:42+00:00\",\"dateModified\":\"2025-12-19T17:38:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-coming-after-south-african-taxpayers-for-millions\"},\"wordCount\":992,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-coming-after-south-african-taxpayers-for-millions#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2025\/12\/sm_1766153121.521042.jpg\",\"keywords\":[\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-coming-after-south-african-taxpayers-for-millions#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-coming-after-south-african-taxpayers-for-millions\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/sars-coming-after-south-african-taxpayers-for-millions\",\"name\":\"SARS coming after South African taxpayers for millions - 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