Cape Town – SARS commissioner Edward Kieswetter has revealed that approximately 100,000 individuals in South Africa earn over R1 million but evade tax by not being registered, costing the fiscus around R100 billion in potential revenue.
According to IOL, Speaking at a News24 post-Budget event, Kieswetter highlighted the need to track these individuals to boost tax collection.
“There are probably at least 100,000 individuals who are in South Africa at the moment, earn more than R1 million, but are not on our register. Imagine if we could find them. You add another R100 billion onto your tax bill,” Kieswetter was quoted as saying.
Experts suggest SARS likely identified tax evaders by monitoring spending patterns, Daily Investor reported.
Jashwin Baijoo from Tax Consulting SA revealed that 156,000 taxpayers are either unregistered or have defaulted on their tax filings.
This is particularly concerning as only 1.6 million South Africans bear the bulk of the tax burden, while nearly 30 million depend on social grants.
SARS is set to receive R7.5 billion over the next three years to enhance tax collection, with R3.5 billion allocated for 2025/26 and an additional R4 billion over the medium term.
This funding will be used to pursue outstanding tax debt, modernise technology, and combat illicit financial activities through data science, machine learning, and AI.
Kieswetter estimated that South Africa loses R800 billion due to uncollected revenue, with 40%-45% attributed to outstanding tax debts and unfiled returns, and the remaining 55% linked to illicit financial flows and tax crimes.
He emphasised the importance of modernising SARS systems to tackle these challenges.
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Compiled by Betha Madhomu
