Taxpayers have been warned that the South African Revenue Service (SARS) is increasing pressure on unpaid taxes as a significant amount of unconfirmed debt now comes under the service's focus.
According to Tax Consulting SA, the volume of such debt has increased by approximately 124 billion rand, representing 30.4% compared to March 2025. This unconfirmed debt includes amounts of taxes that taxpayers have not disputed, as well as penalties for violations such as late filing of tax returns.
The firm noted that the figure of 532 billion rand does not reflect SARS' total tax debt; it relates exclusively to obligations that taxpayers do not dispute and which SARS can use to recover funds.
Structure of Unconfirmed Debt
The composition of this debt provides insight into where SARS can most effectively apply its resources to pressure non-compliant taxpayers. VAT contributes the largest share, amounting to about 183.4 billion rand. This is followed by corporate income tax, estimated at approximately 132.9 billion rand, and personal income tax, which accounts for about 90.7 billion rand. These three categories together constitute the majority in the unconfirmed debt register.
Debt Collection Measures by SARS
It has been warned that taxpayers can no longer rely on SARS delaying action against overdue debt. According to the firm, the days when SARS would send Payment Demand Letters and then forget about the debt for months or years are over. Thanks to improved data analytics detection and collection capabilities, SARS is fully utilizing all available legislative mechanisms to recover unpaid amounts.
Furthermore, it was added that if the debt remains unpaid, SARS can take additional steps, including appointing a third party, such as a bank, to directly transfer funds held on behalf of the taxpayer to SARS. The revenue service also has the right to seek a civil judgment for the outstanding debt, which could lead to the seizure and sale of the taxpayer's assets.
For taxpayers who cannot repay the entire debt, South African tax legislation provides certain measures to alleviate the debt burden, such as payment deferrals and compromises under established conditions.