SARS’ New Tactic: Is Your Payroll in Danger?

On 1 February 2020, the South African Revenue Service (SARS) released an exciting media statement, indicating that the revenue authority has embarked on a journey to reinvent SARS. With the power of technology and with the right people, SARS hopes to build an organisation that will provide a world-class service to the compliant taxpayer, but one that will be equally tough on transgressors.

SARS’ vision will come to fruition if they are able to successfully optimize collections in a bid to make up for a massive revenue shortfall. This announcement, albeit encouraging, should set off the alarm bells for HR and payroll managers due to SARS’ aggressive approach to auditing company payrolls.

Company payrolls appear to be the latest target for audits or verification from SARS. Those who are not fully compliant will expose themselves to these far-reaching consequences that will result in harsh penalties. This is yet another blow to organisations who are trying to keep their head above water in these tough economic times.