Pretoria - The net is closing in on non-complaint cash and carry businesses in Gauteng, with over 100 sites being inspected, said the South African Revenue Service (SARS).
The crackdown was launched in December 2015 as part of a focused approach to combat non-compliance in several sectors. On-site inspectors perform compliance checks to identify registration, filing non-compliance and thus flag any suspicious businesses. To date, SARS has found at least 50% of these businesses to be non-compliant with registration, filing or payment.
In a statement on Wednesday, the revenue service said several audit cases were concluded with assessments raised in the past financial year now standing at over R600 million.
“There is a significant risk of under declaration due to poor record keeping and high volumes of cash transactions in this sector,” said SARS.
It said registrations are now being conducted as well as follow-ups on outstanding returns, collection of outstanding debt and further risk profiling for full audits where there is evidence of under declaration and collection of outstanding debt.
Penalties are being applied where applicable. Where there is evidence of gross negligence and intentional tax evasion, the revenue service will institute criminal investigations that may lead to prosecution.
“SARS is closing in on those who under declare on their tax liability, both individuals and companies. We encourage all taxpayers to ensure their affairs are in order and they are contributing their fair share towards the cost of running the country,” said SARS Commissioner Tom Moyane. – SAnews.gov.za
