The South African Revenue Service (SARS) is cracking down on tax evasion by enforcing strict measures under the Tax Administration Act (TAA).
These include seizing passports, blocking international travel, and closing the businesses of those who fail to comply.
No Travel if You Owe SARS Taxes
According to BusinessTech, tax experts Jashwin Baijoo and Delano Abdoll from Tax Consulting SA warn this should serve as a wake-up call.
“There is a common misconception among wealthy South Africans that they can just ‘pack up and leave’ if SARS finds them to be non-compliant,” they said.
SARS has already invoked these powers, proving even the wealthy are not beyond its reach.
A senior SARS official can demand the surrender of a taxpayer’s passport.
The agency can restrict travel for expatriates or block foreign nationals from conducting business in South Africa.
“Without a passport, or with targeted travel restrictions imposed—a taxpayer cannot go anywhere before they have paid their dues to SARS,” the experts explained.
Foreigners Also Face Serious Consequences
Foreigners who ignore South African tax laws risk having their business licences revoked.
This can also affect their work or residency visas and access to banking services.
Court Upholds SARS’s Legal Powers
The High Court in Pretoria upheld the constitutionality of these powers.
Ruling that the limitations on individual rights are “reasonable and justifiable in an open and democratic society” because of the importance of public revenue.
SARS welcomed the judgment, stating: “This precedent-setting decision reaffirms SARS’ legal authority to discharge its work of collecting all revenue due to the state efficiently and effectively.”
Record Collections
SARS Commissioner Edward Kieswetter recently revealed that the agency had collected a record R2 303 trillion in the 2024/25 financial year, despite GDP growth stagnating at just 0.7%.
He attributed this to a strong focus on compliance, supported by advanced technologies.
“An entire team is no longer required to extrapolate records into strong legal cases,” said Kieswetter. Noting how AI and machine learning have significantly increased SARS’s ability to detect tax dodgers.
SARS uses these tools to match people’s lifestyles against their declared incomes and spot red flags.
During a visit to South Africa, Microsoft President Brad Smith praised SARS’s tech strategy. Calling it a standout example of digital transformation in the public sector.
Are these strict measures necessary to ensure tax compliance?
Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.
Subscribe to The South African website’s newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
