SARS is using hi-tech data analysis systems to ramp up operations against tax dodgers and South Africans squirrelling away money and assets in offshore havens.

TimesLIVE reports that SARS' increased use of data and sophisticated machine-learning programs included ramping up collaboration with its international counterparts.

‘Using the data from domestic and international sources, input into machine learning models, risk profiling and case selection, trends have already been observed, with positive outcomes in a number of instances.’

Information the taxman is using to find hidden assets includes data from SA banks, retirement funds, medical insurance providers, the deeds office, companies register, the national register of motor vehicles, the National Treasury central supplier database and the national population register.

It said data gleaned from overseas sources included the exchange of information on South Africans with offshore financial assets from 100 foreign jurisdictions. This was obtained through mutual administrative agreements with sister organisations.

Through data collection and machine-learning programs, SARS had collected R115bn from compliance activities, of which ‘33% (is from) the results from the automatic risk profiling of taxpayers using data and machine learning. Of the previously reported 26 000 individuals with economic activity and assets exceeding R1m, almost 1 000 have been identified as being involved in money laundering and other serious crimes.’

SARS said of 275 people who had been found, through information exchange programmes, to have assets in overseas tax havens, ‘the first 50 individuals have been selected for further scrutiny’.

SARS is working with the US Internal Revenue Service and that country’s foreign account tax compliance Act to connect a number of South Africans with links to the Pandora Papers disclosures and investments into a number of states.

The Pandora Papers, which consisted of 11.9m confidential records, was an investigation by the International Consortium of Journalists into murky offshore financial systems used by the wealthy.

Full TimesLIVE report