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AI-enhanced audit capabilities, causing headaches for taxpayers.

SARS is stepping up its game with AI-enhanced audit capabilities, causing headaches for taxpayers. Compliance status doesn’t guarantee immunity anymore, as many are receiving unexpected audit notifications and requests for information. The use of AI is helping SARS dig deeper into taxpayer bank statements, leading to adjustments and additional assessments.

Recent months have seen a surge in audits resulting in adjustments due to missed information requests. Taxpayers are now facing additional taxes on unexplained income, based on bank account analysis. SARS is not holding back on issuing additional assessments to recover the owed taxes. To combat non-compliance, SARS is lifting limitations for cases involving fraud, misrepresentation, or non-disclosure of material facts.

Recent cases like Chef Lusizo Mvula’s conviction for tax fraud highlight the consequences of dodging taxes. To avoid penalties and prosecution, timely and thorough responses to audit requests are crucial. Seeking expert advice before it’s too late can save taxpayers from hefty fines and legal troubles. Partnering with a knowledgeable team can help navigate the complexities of tax laws and protect against harsh enforcement measures – give us a call at CTF

Excerpt from a SARS issued Notice of Audit on Personal Income Tax, dated March 2024

This has become the shocking reality for many historically compliant taxpayers, and SARS’ Audit Team appear to be strongly enforcing the zero-tolerance policy on any non-compliance. Aiding their cause, and easing the pressure of the job, are the data driven insights derived from AI use, including processing of taxpayer bank statements without any prior warning, or consent.


On Key

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