The recent call by the SARS urging taxpayers to make use of the programme that allows them to voluntarily disclose any tax defaults could be a ‘warning shot across the bow'.

This observation follows the announcement that SARS has started to auto-register taxpayers who are not on its tax register but should be. 

Moneyweb reports that this could offer them a ‘window period’ to get their affairs in order before the taxman comes knocking, says Elle-Sarah Rossato, head of tax controversy and dispute resolution at PwC SA.

She said a successful voluntary disclosure application means penalties because of non-compliance are waived and taxpayers are allowed to settle outstanding tax liabilities without having to fear potential criminal prosecution.

SARS has started to expand the tax base by auto-registering taxpayers who are flying under the tax radar while engaged in economic activities.

It is increasingly using third-party data to detect non-compliant taxpayers.

This may be a good time for these taxpayers to regularise their tax affairs before they are ‘caught out’, said Rossato.

Full Moneyweb report