Editors In Chief
The South African Revenue Service (SARS) has been intensifying its efforts to crack down on tax evasion, and black businesses are not exempt from this scrutiny.
For the 2024/25 financial year, the taxman collected R1.855 trillion in tax revenue which was mainly driven by personal income tax, and he (the taxman) refunded R44.7 billion to taxpayers. Currently, the taxman is on a mission to collect between R20 billion and R50 billion in unpaid taxes.
The big question is, from whom?
Hi everyone my name is Refilwe Mochoari and I would like us to discuss tax evasion, tax education, and the consequences that come with the latter. Growing up in our communities, I knew of a few businessmen who suddenly went broke. It has always been such a mystery, how one can be a successful business one day and financially struggle the next.
Today I understand that tax evasion has been a long-standing issue. Think about KwaZulu Natal businesswoman Shauwn Mkhize who has been locked in a legal battle with SARS for close to R40 million in unpaid taxes, or just anyone around you who has had SARS knocking at their door.
This has raised questions about what SARS's increased vigilance means for black businesses.
Some people argue that SARS is targeting black entrepreneurs, others suggest that black entrepreneurs eat before they pay SARS and some say black businesses forget about tax compliance.
What I know for certain is that no matter what your skin color looks like, you can never escape SARS.
While writing this article I spoke to several black entrepreneurs, accountants, and bookkeepers trying to understand the issues surrounding SARS.
They blame their accountants and their bookkeepers, but accountants blame their clients saying, “They do the work and comply later”…. So if you know you have not been paying your taxes, the Voluntary Disclosure Programme (VDP) is available for you before SARS comes knocking at your door.
For businesses with tax irregularities, this is your opportunity to come clean.
The SARS's VDP gives you a chance to rectify your tax affairs. The VDP allows businesses to disclose defaults voluntarily, potentially avoiding penalties and prosecution. To qualify, the disclosure must be:
Voluntary: Made without SARS's prior knowledge or investigation.
Complete: Fully described and complete in all material aspects.
No Refund: Not triggering a refund due to SARS. By understanding SARS's powers and the importance of compliance, black businesses can navigate the complexities of tax regulations and avoid potential penalties.
