SARS will soon have unprecedented access to South Africans’ offshore financial information, reports the Saturday Star.

Starting next month, the revenue service will begin receiving bulk financial data from more than 120 jurisdictions under expanded Automatic Exchange of Information standards developed by the Organisation for Economic Co-operation & Development.

The new framework will allow SARS to systematically obtain details of foreign bank accounts, investments, trusts and digital asset holdings linked to SA tax residents.

According to Jashwin Baijoo, partner and head of strategic engagement & compliance at Tax Consulting SA, the development significantly strengthens SARS’ ability to verify offshore disclosures.

‘The investigation into SA taxpayers’ offshore interests has long been on the cards with SARS, with foreign asset/income disclosure notices being issued as far back as 2020, entailing a blanket disclosure of offshore assets,’ Baijoo said.

‘At the time, many taxpayers may have thought best to feign ignorance, but now, there is no escape for the non-compliant SA taxpayer, with over 120 countries playing open cards with SARS,’ Baijoo added.

Full Saturday Star report

SARS Commissioner Edward Kieswetter told the Sunday Times that the high-wealth individual unit and other SARS divisions urgently need additional technical skills to improve collections and co-operation with other institutions to enhance compliance.

'We could do with more forensic investigators, not just in (the high-net-worth unit), but across the board. We can do with more wealth management specialists who understand how family offices work and how offshore structuring works. '

Kieswetter said the primary purpose of the high-wealth individual unit is to provide a better service for people who have a different structure of income and wealth than ordinary people. 

The role of the unit, established in 2021, will be clearer once SARS has tallied its collections in March.

Full Sunday Times report