SARS Is Collecting More – and SMEs Are Under Pressure
- 6 days ago
- 2 min read
Updated: 1 day ago
SARS is currently trying to recover almost R489 billion in unpaid, undisputed tax debt. While they have already collected over R62 billion this financial year, there is still a large shortfall. This means one thing for businesses: SARS is stepping up enforcement and collections.
Why this matters for small businesses
A large portion of the outstanding tax debt relates to VAT.
Business owners and directors should be aware that SARS can, in certain cases, hold individuals personally responsible for unpaid company taxes — especially where poor management or negligence contributed to the non-payment.
This does not only apply to accountants or financial managers. Directors, shareholders, and business owners who are involved in financial decisions may also be at risk.
Penalties can be serious
Failing to comply with tax laws can lead to:
Penalties and interest
Legal action by SARS
In serious cases, criminal charges
SARS is no longer lenient where non-compliance continues for extended periods.
The good news: help is available
If your business has a tax debt but is struggling to pay, SARS does offer relief options, including:
Payment arrangements
Compromise of tax debt, where SARS may agree to reduce the amount payable based on affordability
When handled correctly, these options can prevent aggressive collection actions and help keep your business operational.
How we can help
As professional accountants, we assist clients by:
Reviewing and correcting tax compliance issues
Engaging with SARS on your behalf
Structuring payment plans or compromise applications
Reducing penalties and avoiding unnecessary enforcement
The earlier tax issues are addressed, the easier and cheaper they are to resolve.
Final takeaway
SARS is under pressure to collect outstanding taxes — and businesses will feel it. Ignoring tax problems is risky, but with the right professional support, they can be managed.
If you are unsure about your tax position or have outstanding tax debts, speak to us.
We are here to help you stay compliant and protect your business!
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