SARS nails single taxpayer for R155 million
The South African Revenue Service (SARS) has secured a provisional sequestration order against a taxpayer to the tune of R155 million for tax non-compliance.
The sequestration allows SARS to seize assets of an individual taxpayer to cover their tax bill.
According to Tax Consulting SA, the taxpayer in question was the sole director of a company that carried the tax liability.
The order was confirmed by the North Gauteng High Court last week.
In this case, SARS took legal action against the taxpayer and placed their estate under external administration due to insolvency or unpaid debts directly related to the tax liabilities.
Tax Consulting said that this was another shot from SARS, showing that it would target tax defaulters without hesitation and come after them with the full might of the law.
It was also evidence of the revenue service’s far-reaching powers and zero-tolerance approach—and the latest in a string of battles against individual taxpayers that resulted in multi-million paydays for the taxman.
Earlier in the year, SARS secured a judgment from the Supreme Court of Appeal clawing back R40 million from impermissible tax rebates, as well as R30 million from a taxpayer using creative accounting to lend money to their own businesses.
Also in October, SARS secured a R46 million payout using its General Anti-Avoidance Rules (GAAR) against a taxpayer who had been channelling their remuneration through foreign entities to avoid paying tax.
Following the latest win, SARS Commissioner Edward Kieswetter reiterated the service’s approach to non-compliance, again sending a warning to taxpayers who are flouting or abusing the laws.
“Where taxpayers opt to wilfully disregard their obligations by acting outside the remit of the law, SARS will make it hard and costly,” he said.
“SARS will continue to act lawfully and decisively against those who deliberately seek to evade or neglect their tax responsibilities. The message we want to communicate is that no matter how long it takes, SARS will not abdicate its responsibility to enforce the law.”
Collection drive
The objective of making non-compliance hard and costly has shown a clear positive impact on SARS’ tax debt collections, which was shown in its 2024/25 Annual Report, published on 30 October 2025.
In the last financial year, SARS collected net revenue of R1,855.3 billion, from which the largest contributor was personal income tax, bringing in R733.2 billion.
This taxpayer segment alone showed a 12.6% collection increase from the 2023/24 period.
SARS included a five-year term review of its operation between 2019/20 and 2024/25, covering Kieswetter’s tenure as commissioner and the changes he brought to the service.
During this time, the tax authority has greatly strengthened its regulatory framework to combat tax evasion more effectively.
This includes new regulations on Crypto-Asset Reporting and revisions to the Common Reporting Standards (CRS).
The seizure of assets from individuals—as has been the case in the latest instance—sends a clear message that SARS is prepared to employ severe measures against tax defaulters.
Tox Consulting said that clear messaging from SARS has been that no taxpayer, regardless of their economic standing, is beyond the reach of SARS’ compliance efforts.
When it comes to tax defaults and debts, SARS has the power not only to attach assets to recover its dues but also to deduct money directly from bank accounts or attach salaries until the debts are paid off.
“Recent trends in this regard have also shown SARS considering not just current compliance but also delving into historic risks of non-compliance,” Tax Consulting said.
“In some instances, even requesting taxpayers to look into their crystal balls and provide SARS with income and expenditure estimates for future tax periods.”
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