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3. SARS STRATEGIC PLAYBOOK
SARS already has several foundational assets to achieve its mandate. These provide the necessary strategic clarity that sets out what we do, why we do it, how we do it, and informs how we allocate resources , how we define success , and what SARS will look like when we have achieved it. For completeness and convenience, these are set out in this section. 3.1 SARS LEGAL MANDATE SARS legal mandate is to collect revenue, facilitate legitimate trade, and ensure compliance. It derives its legal authority from the SARS Act, 1997, which require SARS “to make provision for the efficient and effective administration of the revenue collecting system of South Africa”.
In fulfilling its mandate, SARS will be an innovative tax and customs administration that enhances economic growth and social development, and that helps to integrate South Africa into the global economy. 3.4 SARS THEORY OF COMPLIANCE We believe that most taxpayers are honest and want to comply with their legal obligations. They want to do so though, with least cost and effort. This implies that we bias our efforts towards honest taxpayers who want to comply voluntarily, whilst continuing to discourage dishonest taxpayers. Drawing on behavioural insights, that underlie this compliance theory, we hold the belief that Voluntary Compliance is best achieved when SARS: 1. Provides clarity and certainty of how we understand taxpayers’ obligations 2. Makes it easy for taxpayers to fulfil their obligations 3. Ensures that there’s always a credible threat of detection of non- compliance 4. Understands its entire tax register that differentiates Taxpayers based on: » Their unique character and needs (Segmentation) » The extent, nature and degree of their compliance (Risk Profiling) 5. Selects the nature and extent on engagement with taxpayers based on segmentation and risk profiling (Case Selection) 6. Composes and communicates a transparent programme of work, including the consequence of non-compliance (SARS Compliance Programme) 7. Builds confidence and Public Trust in the entire tax administration ecosystem by: » Improving voluntary compliance and fiscal citizenship overall » Broadening the tax base so that more contribute their fair share » Use taxpayer’s money/resources intelligently to achieve more with less » Building and maintaining strong partnerships with all stakeholders, including other government agencies » Building an organisation with integrity that can be trusted and admired These insights inform our compliance model as well as our strategic intent and 9 strategic objectives.
In pursuit of its mandate, SARS is further required to administer a number of primary legislations, including:
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Income Tax Act, 1962
Customs and Excise Act, 1964 Value-Added Tax Act, 1991 Tax Administration Act, 2011
Employment Tax Incentives Act, 2013 3.2 SARS HIGHER PURPOSE
Whilst the law gives SARS its legal authority, the organisation earns its moral authority by defining for itself an incontestable higher purpose orientation. Our reason for existence. We frame our Higher Purpose as providing the financial resources that “enable government to build a capable state that fosters sustainable economic growth and social development, serving the well-being of all South Africans” 3.3 SARS VISION To fulfil its mandate, SARS’s vision is “to build a smart, modern SARS with unquestionable integrity that is trusted and admired”. This means that SARS must always be guided by the highest standards of institutional integrity. This requires on the one hand an administration system that employs skilled and competent professionals, within an environment enabled by the latest smart technologies, whilst at the same time, conducting its work in a manner which is ethical and beyond reproach. The public must trust us, and our international peers must admire our work.
SARS Modernisation White Paper 2025/26 – 2029/30
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