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Do We Know What SARS Knows?
- 15 January 2025
- VAT
- Christo Theron
SARS’ systems are becoming increasingly integrated and sophisticated. Anyone who still believes with any degree of confidence that SARS will never detect something is either delusional or completely out of touch with the current reality. So, do we know what SARS knows?
Well, do we?
The simple answer is that it should not matter. Compliance is the responsibility of each taxpayer and should never depend on SARS lacking full visibility of transactions or arrangements. The assumption should always be that SARS does have full visibility.
The Role of the Tax Manager
When it comes to indirect taxes, where tax consequences are linked to each individual transaction, it is crucial for modern tax compliance officers to utilise systems and procedures that can manage a vast number of transactions—many of which may not always be fully visible to the tax manager.
Unfortunately, the tax environment is in constant flux. Changes to how transactions are taxed, coupled with evolving legislation and its interpretation, create ongoing challenges. It is therefore essential for tax managers to continuously refresh their knowledge and systems, much like replenishing the Dead Sea with fresh water to keep it from becoming stagnant.
Who Trains the Tax Managers?
The responsibility lies with tax managers to ensure that their knowledge and expertise remain relevant and up to date, enabling them to effectively fulfil their mandate.
If this mandate is not properly executed, resulting in losses for the entity due to tax failures, tax managers are unlikely to receive much sympathy from stakeholders. Claiming there was no budget for training won’t suffice as an excuse when the proverbial you-know-what hits the fan.
What About Tax Practitioners?
If a tax failure arises due to tax practitioners being out of touch with the latest developments in the field, the consequences can be even worse.