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3.5 SARS COMPLIANCE MODEL Based on our compliance theory of segmentation and risk profiling, our Compliance Model differentiates our engagement with taxpayers. The pyramid represents the universe of taxpayers, and our engagement is graduated from the base to the peak of the pyramid. At the base of the pyramid, where most taxpayers are located, we bias our engagement on awareness and ease of compliance. At the peak of the pyramid, are those who consciously do not comply, we enforce unapologetically, making non-compliance hard and costly.
3.6 SARS STRATEGIC INTENT AND STRATEGIC OBJECTIVES Based on our theory and model of compliance, the SARS strategic intent is “to develop and administer a tax and customs system based on voluntary compliance, and, where appropriate, enforce it responsibly and decisively”.
To support this intent, SARS implements Nine Strategic Objectives.
SARS 3 core strategic objectives for achieving voluntary compliance are:
1. SO1: Provide clarity and certainty to taxpayers and traders. 2. SO2: Make it easy to fulfil tax obligations. 3. SO3: Detect tax evasion and enforce tax law.
Our Compliance philosophy drives our compliance model
Taxpayer approach towards compliance:
SARS approach towards compliance: ▷ Enforce the full extent of the law ▷ Detect and deter non-compliance ▷ Provide assistance to comply
These are enabled and supported by the 4 strategic objectives that enables the core business , viz.:
HIGH
ENFORCE
▷ Conscious decision not to comply
4. SO4: Develop a high performing, diverse, agile, engaged and evolved workforce 5. SO5: Increase and expand the use of data within a comprehensive knowledge management framework, to ensure integrity, derive insight, and improve outcomes 6. SO6: Modernise our systems to provide digital and streamlined online services 7. SO7: Demonstrate effective resource stewardship to ensure efficiency and effectiveness in the delivery of quality outcomes and performance excellence
▷ Does not want to comply ▷ Willing but not always able to comply ▷ Willing to do whatever is necessary
Most taxpayers are honest and want to comply with the greatest of ease and lowest cost
▷ Make it easy to comply
Recognising that we are part of a broader system, we have 2 strategic objectives that define our relationships and interdependence , viz.:
Make aware and easy
LOW
8. SO8: Work with and through all stakeholders to improve the tax co-system 9. SO9: Build public trust and Confidence in the tax administration system
Figure 1: SARS compliance model.
Each of these strategic objectives (SO’s) are expressed as a user experience to further give expression to the digitalisation programme. Collectively, these strategic objectives are central to the approach to our work and informs our 5-year Strategic Plan as well as the successive Annual Performance Plans. We also derive our Operational Plan and Compliance Programme from the strategic playbook.
SARS Modernisation White Paper 2025/26 – 2029/30
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