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In current economic times, some taxpayers may prefer to follow the “head-in-sand” approach when it comes to outstanding tax debts it has no means of paying. Unfortunately, this approach will not make the tax debt go away, but rather give rise to interest being levied in respect thereof.
SARS recently came up with the new initiative of creating auto-assessments for taxpayers. SARS makes use of data they receive from employers, financial institutions, medical schemes, retirement annuity fund administrators and other 3rd party data providers to create the auto-assessment.
With the Minister having recently announced the R3 billion spending allocation towards the enhancement of SARS enforcement with a particular focus on transfer pricing, it is highly probable that we will be seeing more queries and audits in this area.
A registered South African trust can be used as a risk management tool. As such it iscommon for a trust to enter into a transaction whereby assets are acquired from a connected person to the trust.
It was announced in the 2021/2022 Budget that an additional spending allocation of R3 billion willbe provided to SARS to:
