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6.2.2 DEVELOPING A UNIQUE DIGITAL IDENTITY FOR EVERY TAXPAYER AND TRADER IN PARTNERSHIP WITH OGAS As the South African economy rapidly digitises, SARS and other organisations face challenges in verifying customer identities and protecting personal information, leading to a lack of trust in the financial ecosystem between those who issue the identity, those to whom the identity belongs, and those who rely on or must verify the identity provided as proof. To resolve these challenges, SARS will collaborate with the Department of Home Affairs, CIPC, Deeds Office, High Court Master, SARB, and other trusted stakeholders to develop a national digital identity ecosystem. By creating a robust, user-friendly digital identity ecosystem and a Unique Digital Identity for every taxpayer and trader in South Africa, this initiative will enhance regulatory compliance, empower individuals and organisations to manage and share their personal information securely, and reduce identity fraud and arbitrage opportunities.
6.2.4 CREATING A SINGLE CUSTOMER VIEW
Currently, SARS’s data for taxpayers is fragmented and spread across multiple systems, impairing SARS’s ability to understand and engage taxpayers effectively, leading to a poor experience and compliance. By consolidating all customer data into a comprehensive profile, the Single Customer View will enhance taxpayers’ experience, improve operational efficiency, and increase compliance. This integrated approach will lead to higher self-reliance by taxpayers, as well as a deeper understanding of individual preferences and behaviour, allowing for more accurate and timely responses to taxpayer needs, fostering a sense of being understood and valued.
6.2.3 PARTNERING WITH SARB TO BUILD AN INSTANT PAYMENT SYSTEM
6.2.5 EMBEDDING THE COMPLIANCE MODEL IN THE ADMINISTRATIVE PLATFORM This initiative deals with the challenges of taxpayer non- compliance by using sophisticated risk models powered by machine learning and AI. SARS has developed an entity-scoring model to provide an in-depth perspective on compliance, behaviour, and risk. The project focuses on optimising data use, enhancing compliance verification, and modernising systems to improve efficiency and reduce backlogs. By fostering a culture of voluntary compliance and using advanced data analysis, SARS aims to create a fair and efficient tax system that builds trust and cooperation between taxpayers and authorities. Embedding the compliance model in the case management system, allows for real-time risk profiling and case selection, reducing the dependence on taxpayer declaration as the key trigger.
Digital payments play a crucial role in economic digital transformation, stimulating economic activity, facilitating trade, and creating opportunities for innovation. Although South Africa has made significant progress in adopting digital payments, certain segments of the economy still heavily rely on cash. They are reluctant to adopt digital payments owing to high transaction fees, limited payment options, and digital security concerns. SARS is collaborating with SARB to lower these barriers by building an instant- payment system to enhance economic inclusion and shift society toward a cash-smart economy, and increase financial inclusion. This digital payment system will enable seamless reconciliation between national payment transactional data and SARS’s VAT-modernisation solution, ultimately offering more secure payment, an intuitive e-commerce experience, and instant payment processing.
SARS Modernisation White Paper 2025/26 – 2029/30
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