Yes, SARS Can Stop You From Leaving South Africa – And the Courts Agree

If you’ve ever believed that packing your bags and heading out of the country could help you escape your tax troubles, you might want to rethink that plan. A recent High Court ruling in Pretoria has confirmed what many hoped wasn’t true: SARS (the South African Revenue Service) has the constitutional authority to stop you from travelling—and even shut down your business—if you’re not tax-compliant.

The judgment reinforces the power of SARS to enforce sections of the Tax Administration Act (TAA) that are designed to ensure compliance and protect the country’s fiscal integrity.

Yes, SARS Can Legally Take Your Passport

One of the lesser-known yet powerful tools in SARS’ arsenal is the ability to limit a taxpayer’s right to travel outside the country. A senior SARS official can legally demand that a taxpayer surrender their passport. This power isn’t theoretical—it’s been tested in court and found to be lawful.

This sends a clear message to individuals who think they can dodge SARS by simply hopping on a plane, especially expatriates and wealthy South Africans who haven’t formally cut ties with the country’s tax system.

SARS Can Shut Down Your Business—Even If You’re a Foreigner

It doesn’t stop at travel. The TAA also gives SARS the right to stop non-compliant individuals and companies from trading within South Africa. This includes revoking the right to conduct business, which can affect foreigners holding work permits, residency visas, and local bank accounts.

Simply put, being a guest in the country means following the rules—and paying your taxes is part of the deal.

Local Businesses Aren’t Exempt Either

If you’re a South African business owner, this ruling should be a wake-up call. SARS has the authority to order your business to cease trading if you fail to meet your tax obligations. The financial and reputational impact of such a move can be devastating.

Court Says It’s Constitutional

Some may argue that these powers are excessive or infringe on personal rights. However, the High Court disagrees. The recent judgment found that these provisions are reasonable and justifiable in an open and democratic society.

Given the country’s ongoing fiscal challenges, tax collection is not just a legal necessity—it’s a public interest imperative.

What Should Taxpayers Do Now?

The message from SARS is loud and clear: non-compliance is no longer tolerated.

If you’re behind on your taxes or haven’t declared fully, now is the time to act. Here’s how to stay ahead:

• Consult a tax professional to understand your risks and obligations.

• Make payment arrangements if you owe SARS money.

• Use any voluntary disclosure or first-mover options to fix issues before they escalate.

• Don’t underestimate SARS’ ability to enforce the law—and their willingness to do so.

Final Thought

SARS’ increased enforcement signals a new era of accountability. Whether you’re a business owner, a South African living abroad, or someone with undeclared income, the bottom line is this: paying your taxes is no longer optional—and escaping the consequences is no longer possible.

{Source: Polity}

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