The South African Revenue Service (SARS) has announced a crackdown on crypto asset tax evasion, vowing to include these digital assets in its comprehensive tax compliance programs. The revenue collector is seeking information on crypto users and is ramping up efforts to identify and audit non-compliant taxpayers.
In a statement released today, SARS urged taxpayers to participate in the Voluntary Disclosure Program, highlighting the severe consequences of deliberate tax evasion. The taxman emphasized that all non-compliant taxpayers will be held accountable, regardless of their level of involvement in crypto activities.
SARS is working closely with the Financial Sector Conduct Authority (FSCA) and crypto asset service providers to gather information on crypto users in South Africa. The revenue collector has stated that it will leverage advanced technologies, such as AI and machine learning, to enhance its ability to detect and investigate non-compliance.
Commissioner Edward Kieswetter warned that SARS will not tolerate any attempts to evade taxes related to crypto assets. “We have significantly improved our capabilities to identify non-compliant taxpayers,” he said. “SARS will pursue all non-compliants without fear, privilege or prejudice.”
While SARS is encouraging voluntary compliance, it has also made it clear that taxpayers who are already under audit will not be eligible for the Voluntary Disclosure Program.
