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• International Cooperation: SDG 17.1 supports capacity building; OECD AEOI (713 CRS packages received), FATF for transparency, and WCO for trade facilitation/security. Donations (e.g., R19.1 million for devices) aid digital upgrades.
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Resolve disputes administratively. Engage in alternative dispute resolution.
Engage in costly litigation.
Reach agreement by settlement.
And to be effective in achieving its strategic intent of voluntary compliance, SARS requires sustainable investment to: » Increase awareness and certainty of tax obligations. » Work toward a seamless, largely digital experience for fulfilling tax obligations. » Significantly invest in capacity and capability to detect and respond to non-compliance. SARS’s strategic intent of voluntary compliance requires sustainable investment to increase awareness and certainty of tax obligations, work toward a seamless, largely digital experience for fulfilling obligations, and significantly invest in capacity and capability to detect and respond to non-compliance. We have identified the following areas as examples where significantly more focus and investment are required to enhance detection, enforcement, and voluntary compliance: » Tax and financial crime • Illicit and illegal trade flow • Syndicated tax and customs crime • Trade based money laundering » Large and international businesses • Aggressive tax-planning • Base erosion and profit shifting » Individuals with high income and wealth - especially the ultra- wealthy » Ports of entry - physical and technological infrastructure » Emerging, Informal and cash economies » Businesses in the gig, shared, and social media economy » Leveraged products • Advanced rulings (private and public) • Advance-pricing agreements • Cooperative compliance • Authorised Economic Operators
4.2.2.2 THREATS
• Geopolitical and Economic Risks: Protectionism, US fiscal policies, and conflicts (e.g., Ukraine, Middle East) disrupt trade routes, commodity prices, and supply chains; global trade dropped 1.9% in 2023 . • Cyber and Fraud Threats: AI proliferation by criminals; cyber insecurity (top 10 global risk per WEF 2024) endangers data integrity and trust. • Illicit Flows: Sophisticated transnational crime requires enhanced AEOI and data sharing with FIC/OECD. 4.3 Addressing the Compliance Landscape - The “Tax Gap” In giving effect to its legal mandate, SARS must ensure that:
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All taxpayers are aware of their obligations.
» All taxpayers are registered and comply with their obligations. » All taxpayers who fail to comply are detected and held accountable So that: 1. All revenues and duties due are collected 2. Tax and Customs Compliance improves 3. Legitimate trade is facilitated We also know that: » Not all taxpayers and traders who ought to register are registered. » Not all registered taxpayers and traders fulfil their filing and payment obligations. » Not all instances of non-compliance are detected. » Payments due are either never paid or paid only when SARS intervenes. » Not all disputes are timeously resolved and require significant engagement by SARS to:
SARS Modernisation White Paper 2025/26 – 2029/30
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