Johannesburg - The South African Revenue Service (SARS) on Wednesday said its crackdown on non-compliance had resulted in on-site inspections of over 100 cash and carry businesses in Gauteng over the last month.
SARS, in a statement, said the crackdown was part of a new focused approach, launched in December 2015, to combat non-compliance in several sectors.
When it comes to the cash and carry sector, SARS said several audit cases were concluded with assessments raised in the past financial year now totalling more than R600 million.
SARS deployed on-site inspectors to perform compliance checks and to identify registration, filing non-compliance and flag any suspicious businesses.
“To date, SARS has found at least 50 percent of these businesses to be non-compliant with regard to registration, filing or payment,” SARS said in the statement.
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“There is a significant risk of under declaration due to poor record keeping and high volumes of cash transactions in this sector.” SARS said registrations were now being conducted as well as follow-up on outstanding returns, collection of outstanding debt and further risk profiling for full audits where there was evidence of under declaration and collection of outstanding debt.
“The relevant penalties are being applied where applicable. Where there is evidence of gross negligence and/or intentional tax evasion, SARS will institute criminal investigations that may lead to criminal prosecution.”
SARS Commissioner Tom Moyane has emphasised that SARS was closing in on those who underdeclared 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,” Moyane said.
AFRICAN NEWS AGENCY