South African Revenue Service increases litigation and collection efforts

The South African Revenue Service (SARS) is demonstrating increased efficiency and aggression in revenue collection and tax disputes. Recent reports highlight instances of administrative errors, including a taxpayer receiving a final demand for a debt of only one cent and another having a R323,000 refund blocked due to a R50 outstanding balance.

Beyond administrative anomalies, SARS has become a more formidable opponent in legal disputes. According to the agency’s 2024/2025 annual report, SARS achieved an 83% success rate in tax disputes that reached litigation. Experts suggest that taxpayers must now approach disputes with greater strategic and legal precision, as the agency is increasingly prepared to defend its assessments through litigation to meet mounting revenue collection pressures.