{"id":766053,"date":"2024-04-05T08:56:19","date_gmt":"2024-04-05T06:56:19","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=766053"},"modified":"2024-04-05T08:57:43","modified_gmt":"2024-04-05T06:57:43","slug":"sars-is-coming-after-south-africas-rich-as-they-try-to-rush-billions-out-of-the-country","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/766053\/sars-is-coming-after-south-africas-rich-as-they-try-to-rush-billions-out-of-the-country\/","title":{"rendered":"SARS is coming after South Africa&#8217;s rich &#8211; as they try to rush billions out of the country"},"content":{"rendered":"\n<p>The South African Revenue Service (SARS) intends to &#8216;follow the money&#8217;, with High Wealth (HW) Individuals and Multi-National Enterprises (MNE) in the taxman&#8217;s crosshairs. <\/p>\n\n\n\n<p>SARS&#8217; compliance revenue programme has added R293.7 billion to the state&#8217;s coffers, but Commissioner Edward Kieswetter said that SARS would be &#8220;a catalyst to a more efficient and effective economy&#8221; through its tax administration, underscored by the voluntary compliance push. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"RRkrJfKvkr\"><a href=\"https:\/\/businesstech.co.za\/news\/finance\/765115\/kieswetters-latest-tax-haul-beats-estimates\/\">Kieswetter&#8217;s latest tax haul beats estimates<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Kieswetter&#8217;s latest tax haul beats estimates&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/finance\/765115\/kieswetters-latest-tax-haul-beats-estimates\/embed\/#?secret=CH5kcNc4ly#?secret=RRkrJfKvkr\" data-secret=\"RRkrJfKvkr\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<p>Jashwin Baijoo from Tax Consulting SA said that the SARS intends to be the &#8220;catalyst&#8221; by targeting the big-ticket taxpayers &#8211; HW Individuals and MNEs &#8211; as their non-compliance can translate to billions of rands in revenue being lost. <\/p>\n\n\n\n<p>&#8220;The success of SARS\u2019 clamp-down on non-compliance cannot be disputed, especially in extreme cases with high-profile taxpayers \u2013 setting an example to the nation,&#8221; said Baijoo.<\/p>\n\n\n\n<p>&#8220;With the current focus on HW Individuals and MNEs, together with their trusted advisors, being taxpayers in their own right, the goal for 2024\/25 remains the same \u2013 to maximise revenue collections.&#8221;<\/p>\n\n\n\n<p>&#8220;As a strategic mover, Kieswetter\u2019s strategic initiatives, such as the creation of the High-Wealth Individual Unit and insertion into the law of Advanced Pricing Agreements, have served to bolster SARS\u2019 reach and capacity, which is the bane of existence for non-compliant affluent or MNE taxpayers.&#8221;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>High Wealth <\/strong><\/p>\n\n\n\n<p>HW Individuals use elaborate offshore structures and multi-layered investments to optimise their taxes whilst preserving their wealth. <\/p>\n\n\n\n<p>Although the <strong>revenue collected from this segment stood at R12.5 billion last year<\/strong>, SARS will not let that number diminish. <\/p>\n\n\n\n<p>The introduction of the High Wealth Individual Unit and the implementation of the Approval for International Transfer (AIT) process highlighted SARS&#8217; efforts to sink its claws deeper into the rich. <\/p>\n\n\n\n<p>&#8220;Even though SARS has noted a decline in High-Wealth Emigration applications, this is not to say that South Africans are not looking at alternate ways to optimise their tax affairs, including offshore investments,&#8221; said Baijoo.<\/p>\n\n\n\n<p>&#8220;Kieswetter has confirmed that <strong>SARS saw AIT applications to the tune of\u00a0R13.6 billion\u00a0for the last reporting period<\/strong> and only approved R7 billion.&#8221;<\/p>\n\n\n\n<p>Delays for applications are often due to ill-advised or ill-gotten gains, with SARS stating that applicants must have their affairs in order before making an application as it will trigger a risk review. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"oQ0e2ASVA0\"><a href=\"https:\/\/businesstech.co.za\/news\/wealth\/765403\/how-long-you-would-need-to-work-to-become-one-of-the-richest-people-in-south-africa\/\">How long you would need to work to become one of the richest people in South Africa<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;How long you would need to work to become one of the richest people in South Africa&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/wealth\/765403\/how-long-you-would-need-to-work-to-become-one-of-the-richest-people-in-south-africa\/embed\/#?secret=N1tXyLM0aF#?secret=oQ0e2ASVA0\" data-secret=\"oQ0e2ASVA0\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"has-medium-font-size\"><strong>MNEs<\/strong><\/p>\n\n\n\n<p>Although MNEs are familiar with international transactions, many still do not adhere to international tax laws, especially pertaining to base erosion and profit shifting (AKA Transfer Pricing). <\/p>\n\n\n\n<p>&#8220;Although the&nbsp;&#8216;arm\u2019s length principle&#8217;<em>,<\/em>&nbsp;and Transfer Pricing specific Articles, are well-established international principles of the Organisation for Economic Co-operation and Development, many MNEs find themselves facing Transfer Pricing Audits on a regular basis.&#8221;<\/p>\n\n\n\n<p>&#8220;Practically, this stems predominantly from failing to establish the correct tax and legal foundation to support the commerciality and profitability of&#8217;&nbsp;&#8216;affected transactions&#8217;&nbsp;between companies under common control.&#8221;<\/p>\n\n\n\n<p>Although many believe that SARS lacks the technical Transfer Pricing expertise to conduct there&#8217;s audits, it still <strong>collected R36.6 billion<\/strong> from 31 Transfer Pricing Audits, 5 International Audits and 8 Integrated Audits.<\/p>\n\n\n\n<p>SARS has strengthened its tax treatment on all international transfers through AI data-driven processes and the outsourcing of specific functions<\/p>\n\n\n\n<p>Baijoo said this has created &#8220;a competent revenue authority like nothing South Africans have seen before.&#8221; <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-wp-embed is-provider-businesstech wp-block-embed-businesstech\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"wp-embedded-content\" data-secret=\"DX0XWP6MF4\"><a href=\"https:\/\/businesstech.co.za\/news\/finance\/764575\/rich-south-africans-are-in-trouble\/\">Big problems ahead for rich South Africans<\/a><\/blockquote><iframe loading=\"lazy\" class=\"wp-embedded-content\" sandbox=\"allow-scripts\" security=\"restricted\" style=\"position: absolute; clip: rect(1px, 1px, 1px, 1px);\" title=\"&#8220;Big problems ahead for rich South Africans&#8221; &#8212; BusinessTech\" src=\"https:\/\/businesstech.co.za\/news\/finance\/764575\/rich-south-africans-are-in-trouble\/embed\/#?secret=cYc4uPhgRO#?secret=DX0XWP6MF4\" data-secret=\"DX0XWP6MF4\" width=\"500\" height=\"282\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read<\/strong>: <a href=\"https:\/\/businesstech.co.za\/news\/business\/765815\/work-from-home-shift-could-save-south-africans-up-to-r2900-a-month\/\" target=\"_blank\" rel=\"noreferrer noopener\">Work-from-home shift could save South Africans up to R2,900 a month<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SARS may have seen record tax collections, but big-ticket taxpayers are now squarely in the taxman&#8217;s crosshairs &#8211; and they know it.<\/p>\n","protected":false},"author":95,"featured_media":691145,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26],"class_list":["post-766053","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/766053","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=766053"}],"version-history":[{"count":3,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/766053\/revisions"}],"predecessor-version":[{"id":766129,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/766053\/revisions\/766129"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/691145"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=766053"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=766053"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=766053"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}