SARS Apologises for Threatening Legal Action Against Non-Compliant Taxpayers

The South African Revenue Service (SARS) recently found itself in a tight spot over its approach towards taxpayers who have not submitted their tax returns on time. SARS has publically apologised for issuing threatening messages to non-compliant taxpayers, in which the revenue service had warned of impending criminal action.

Earlier this week, numerous taxpayers were taken aback when they received text messages from SARS, threatening to face them with criminal proceedings if they didn't submit their income tax returns within a specified period of 10 days. This confrontation happened after the closure of the 2023 tax season for non-provisional taxpayers on 23 October. Provisional taxpayers, however, still have until January to complete their tax declarations.

In a statement issued Thursday afternoon, the tax authority expressed remorse over the threatening message. The statement recognised that SARS, while having the legal right to penalise non-compliant taxpayers, has a standard practice of first reminding taxpayers and providing an opportunity to comply before initiating any legal action. SARS admitted that the text message sent fell short of these professional expectations.

SARS clarified that the contentious SMS was intended as a courteous reminder to taxpayers of their obligation to submit tax returns within the stipulated timeframe. The wording, however, appeared to threaten even those taxpayers who are generally sincere in their obligations. While SARS is legally empowered to prompt taxpayers about their tax filing duties, it doesn't initiate legal action without first engaging in dialogue with the taxpayer.