CASH & CARRY NON-COMPLIANCE ASSESSMENTS OF OVER R600-MILLION RAISED

Pretoria, 20 April 2016 – The South African Revenue Service’s (SARS) crackdown on non-compliance has resulted in on-site inspections of over 100 Cash and Carry businesses in Gauteng over the last month.
 
The crackdown is part of the new focused approach, launched in December 2015, to combat non-compliance in several sectors.
 
With respect to the Cash and Carry sector several audit cases were concluded with assessments raised in the past financial year now totalling more than R600 million.
 
On-site inspectors perform compliance checks to identify registration, filing non-compliance and thus flag any suspicious businesses. To date, SARS has found at least 50% of these businesses to be non-compliant with regard to registration, filing or payment.
 
There is a significant risk of under declaration due to poor record keeping and high volumes of cash transactions in this sector.
 
Registrations are now being conducted as well as follow-up on outstanding returns, collection of outstanding debt and further risk profiling for full audits where there is evidence of under declaration and collection of outstanding debt.
 
The relevant penalties are being applied where applicable. Where there is evidence of gross negligence and/or intentional tax evasion, SARS will institute criminal investigations that may lead to criminal prosecution.
 
SARS Commissioner Tom Moyane has emphasised, “SARS is closing in on those who under declare on their tax liability, both individuals and companies.  We encourage all taxpayers to ensure their affairs are in order and they are contributing their fair share towards the cost of running the country.”