[ad_1]
The South African Revenue Service aims to use “advanced” data analytics and AI tools as part of a plan to achieve what it’s described as a “tougher” revenue collection target set by finance minister Enoch Godongwana on Wednesday.
The R7.5-billion medium-term allocation initially earmarked for Sars in the first draft of the budget has not changed. R3-billion of this allocation has been set aside for technological upgrades. These upgrades include employing additional IT expertise. Sars wants to increase the tax take by between R20-billion and R50-billion compared to the previous financial year.
“To meet its revised revenue estimate this year, Sars is refining and using advanced data analytics and artificial intelligence to detect tax-compliance risks, close the tax gap and improve overall compliance rates.”
Sars said the revision downwards of both nominal and real GDP growth by national treasury for the 2025/2026 fiscal year, while its revenue collection target has remained the same, will make it “tougher” for the organisation to meet this goal.
“The downward revised outlook reflects a weak outlook for major trading partners and low potential growth amid escalating trade tensions, financial market adjustments and a highly unpredictable environment. Additionally, the outlook is reflective of persisting domestic economic structural issues, such as integrated logistical network limitations,” said Sars.
Automated assessments
Despite this, the agency said it is committed to reaching its target. Beyond its digital initiatives, Sars said it will:
- Integrate expanded third-party data sources, such as banking and payroll information, so that the system can increasingly automate tax assessments and more effectively identify underreported income to combat tax evasion.
- Take direct aim at the illicit economy, especially in high-revenue sectors such as tobacco, alcohol and fuel. Sars aims to recover substantial revenue losses and deter future non-compliance within these sectors of the informal economy through enhanced enforcement against smuggling, counterfeit goods and black-market transactions.
- Broaden the tax base by systematically identifying and registering individuals and businesses that have previously operated outside the formal tax system. Hard-to-tax sectors in the informal economy, particularly small enterprises and self-employed individuals, will be targeted to support increased revenue mobilisation and help to reduce reliance on a narrow tax base.
- Close the tax gap by investing in advanced skills and systems. – © 2025 NewsCentral Media
Get breaking news from TechCentral on WhatsApp. Sign up here.
Don’t miss:
[ad_2]
Source link
