SARS is launching a full-scale crackdown on wealthy South Africans - or those with"complex financial arrangements" – who haven't declared all their income. In December, SARS also alerted many people with overseas holdings that these assets are under review.South Africans who bought pricey cars or property in recent years – with declared income on their tax returns that don’t match this lifestyle – may expect to hear from the SA Revenue Service in the very near future.
Some wealthier taxpayers have already, recently, received letters about a “review” of their international holdings. Some are being required to complete detailed lifestyle questionnaires. The Davis Tax Committee recommended using this kind of information to notify SARS of big spenders who may be under-reporting their real income.Some wealthy taxpayers may already be on edge, after dozens of them received detailed lifestyle questionnaires earlier this year. According to one tax advisor, the document even included questions on how much the taxpayer spent on specific groceries, like meat and vegetables.
These investigations were based on new information that came from overseas financial institutions and other parties as part of the Common Reporting Standards , says Lessing. The CRS compels these institutions and tax authorities in 87 jurisdictions to share information across borders.
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