SARS Is Watching: South Africans Warned About Taxman’s Access to Bank Accounts

The South African Revenue Service (SARS) is cracking down on tax dodgers—and they’re turning to your bank account to do it.

In a record-breaking year, SARS collected R2.303 trillion in gross revenue by March 2025, with R1.855 trillion in net collections after record-high refunds. But the real headline? SARS is watching your financial activity more closely than ever, using advanced technology to spot inconsistencies between what you earn and what you declare.

According to Tax Consulting SA, SARS is ramping up surveillance measures that now include scrutinizing taxpayer bank accounts without prior warning. If your lifestyle doesn’t match your declared income, you could end up in their crosshairs.

AI, Data Science, and the Digital Taxman

Commissioner Edward Kieswetter credited the agency’s high performance to new technologies. SARS is now harnessing artificial intelligence, machine learning, and data analytics to assess taxpayer behavior in real time.

“AI reduces manual effort and improves accuracy,” said Kieswetter. “A small team can now do what would’ve taken dozens of people—and do it better.”

These tools allow SARS to process vast amounts of transactional data, from crypto platforms to banking statements, and flag anything suspicious. Experts say this is no longer a future threat—it’s the new normal.

Yes, SARS Can Take Money from Your Bank Account

One of the biggest revelations? SARS can legally instruct your bank to withdraw funds from your account to cover unpaid tax debt—even without your approval.

Jashwin Baijoo, Associate Director at Tax Consulting SA, confirmed that South African courts consistently side with SARS on such matters. A recent case saw a company in business rescue lose R24 million directly from its bank accounts after it failed to reach an agreement with SARS during legal proceedings.

And individuals aren’t immune. One BusinessTech reader shared how their account was emptied overnight after ignoring calls and letters from the taxman.

The Compliance Programme is Serious Business

SARS’ Compliance Programme pulled in R301.5 billion in revenue last year—a 15.8% year-on-year increase. This was driven by debt recovery, audits, and cross-checking taxpayers’ lifestyles against their declared incomes.

Tax Consulting SA warns: “Non-compliance is becoming both hard and costly.”

What Should Taxpayers Do?

If you’ve been ignoring SARS or hoping it will go away, now is the time to act. With access to everything from bank balances to crypto accounts, and the tech to sort it all out quickly, SARS is no longer playing catch-up.

The message is clear: Get your tax affairs in order, or risk losing your money directly from your account.

{Source BusinessTech}

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