SARS implements AI tech

SARS implements AI tech and this means tax dodgers should beware. Image: File/Fotor

Tax dodgers beware as SARS implements AI tech

As SARS implements AI tech and new machine-learning collection methods, there really is nowhere left to hide for dodgy tax dealings …

SARS implements AI tech

SARS implements AI tech and this means tax dodgers should beware. Image: File/Fotor

SARS implements AI tech to up its windfall for the financial year and has come away billions richer versus its projected targets for 2024. Likewise, experts are saying the South African Revenue Service’s new machine-learning collection tools will soon make tax dodging a thing of the past.

As reported by Business Tech, SARS is in full swing with its artificial intelligence- and machine-learning detection and collection methods. Essentially, SARS has advanced technology doing the heavy lifting on cross-examining Mzansi’s tax affairs. Therefore, this now leaves little room for basic mistakes and nefarious tax dealings. Also, the millions of South Africans participating in the informal economy (off the books of SARS) will be unable to continue hiding their wealth.


SARS implements AI tech
SARS is going after the informal economy to maximise its annual collection. Image: File

Experts from Tax Consulting SA say that going forward there will be little room for error in tax submissions. Consequently, anyone who tries to double cross SARS will find themselves facing very expensive penalties when they are inevitably caught out.

Moreover, SARS put out a message this week regarding 2024 compliance, which should be taken seriously by anyone dealing in tax affairs. As SARS implements AI tech, “The new Compliance Programme uses data and machine-learning algorithms to successfully counter criminality and willful non-compliance,” it said. This is a serious message that SARS has indeed caught up to non-compliant taxpayers.


SARS implements AI tech
SARS implements AI tech to ensure all the possible tax is collected each year. Image: File

Essentially, from 2024 onwards, SARS has befriended Artificial Intelligence to do the heavy lifting that always took a prohibitively long time. Because of this, SARS will have a deep degree of understanding about any taxpayer’s financial affairs, no matter how hidden or complex they may seem.

Furthermore, Tax Consulting SA confirmed that SARS is moving quickly to fulfil its mandate to collect all taxes due. And as SARS implements AI tech, both compliant and non-compliant taxpayers will come under the same level of scrutiny. So, it’s best for you and your tax practitioner to have your tax affairs in order.


SARS implements AI tech
Keeping track of your financial affairs is more essential than ever in light of SARS’ new machine-learning tech. Image: File

“Taxpayers will have to become more proactive and diligent. The emergence of AI-driven investigations means that inaccuracies or discrepancies will no longer be overlooked. SARS’ enhanced capabilities demand meticulous record-keeping and adherence to regulations,” suggested Tax Consulting SA.

It’s evident that SARS is now able to cross-reference multiple points of data to investigate all South African taxpayers. And the level of detail and sophistication showcased in their AI tech necessitates a heightened standard of diligence on the part of the taxpayer, too.

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