The South African Revenue Service has encouraged taxpayers with various digital currencies, which includes crypto assets, to declare these with its Voluntary Disclosure Programme (VDP) to facilitate compliance.
This comes as the South African Revenue Service (SARS) has noted the phenomenal growth in the use of various digital currencies by many South Africans.
Prominent amongst these is the prevalence of crypto assets. A staggering number of more than 5.8 million South Africans hold a crypto asset, with Southern Africa boasting the largest uptake of Bitcoin in the world.
SARS Commissioner Edward Kieswetter once more reminded taxpayers to honestly and dutifully honour their legal obligations by declaring all their income.
“SARS has been working ceaselessly to ensure compliance by all taxpayers, and those who are evading their responsibility make the burden of compliance difficult for compliant taxpayers.
“This is not only unfair to honest taxpayers but affects the vulnerable in society disproportionately by limiting the state’s ability to deliver social grants and other much needed social benefits.
“Let all know that technology has enhanced SARS’ ability to root out non-compliant taxpayers. Be warned, SARS will pursue all without fear, favour or prejudice,” the Commissioner said on Wednesday.
SARS is legally obligated to account for any income or assets held by taxpayers and had previously invited crypto exchanges and those involved in trading or holding crypto assets to disclose related activities on a voluntary basis.
“As a follow up, SARS will be including crypto assets into its compliance programmes. Consequently, SARS is engaging with the Financial Sector Conduct Authority (FSCA) regarding the provision of information on registered Crypto Asset Service Providers (CASPs). SARS is also receiving information directly from the local exchanges.
“Importantly, it must be underscored that through multilateral agreements SARS is exchanging information with other tax authorities globally,” SARS said.
The provision of offshore crypto accounts will be the subject of a multilateral agreement to be signed by Ministers of Finance in November 2024, which will catalyse the cross jurisdictional exchange of such information in respect of South African taxpayers.
“SARS believes that most taxpayers and traders are honest and that they expect to be assisted to fulfil their legal obligations. Pursuant to our legal mandate, SARS provides certainty and clarity about all legal obligations for taxpayers and traders.
“SARS is also working assiduously to make it easy and simple for taxpayers and traders to seamlessly comply with their obligations.
“Critically, it is our strategic objective to make it hard and costly for those who are willfully non-compliant. These efforts are intended to support our Strategic Intent of fostering a culture of voluntary compliance,” SARS said.
Resultantly, in addressing crypto compliance SARS is increasing capability in its audit teams to support enforcement initiatives.
SARS has resorted to greater use of artificial intelligence, machine learning and algorithms to process its work.
“In implementing our mandate, SARS has recently issued query letters to taxpayers with crypto assets. These letters aim to gain an insight into taxpayers’ investment in crypto assets and the trades undertaken to enable SARS to assess taxpayers’ compliance in this regard,” the revenue service said.
SARS warned taxpayers that the VDP, which facilitates compliance, has strict conditions.
“One being that taxpayers must approach SARS first. Once SARS has identified the taxpayer for audit, they are precluded from applying for the VDP,” the revenue service said. –SAnews.gov.za
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Blood Taker
A British man on safari walks into a bar far out in the reaches of a game reserve in Southern Africa, he stays at the bar for a while shooting the shit with the bartender and drinking like a fish, he offer to buy the barkeep a round and since no one else is within 2km of their small oasis of liquor the barkeep obliges. The englishman goes off to the bathroom to have a good old go at the porcelain, he\’s back and ready for a few more whiskeys. He\’s just sat down when suddenly in the distance he hears a scream. He looks over his shoulder and dismisses it as nothing, he turns to the barkeep and orders a drink, takes a sip and hears the scream again. He looks at the barkeep who just shrugs it off. A minute or two later he and the barman hear it again and go outside to take a look. They see a lone figure running towards them screaming, he spots them and lets out a cry, RUN!!!!! HE\”S COMING!!!!!
The barkeep and the Englishman both look at the terrified bedraggled sight before them, and try to calm him down, but he\’s completely inconsolable. They give him water and finally manage to get a word out of him but he struggles free from their grasp and run away screaming.
A few minutes later the same thing happens with a whole group of men running in and screaming, he\’s coming, he\’s coming the barkeep grabs hold of one of the men as he tries to sprint past the bar and tries to get information out of him, again no response other than terrified gibberish.
The barkeep and his customer are starting to get worried, they start to pack up before another group of horrified natives run up to the bar most of them flee but one tries to hide behind the bar, the barkeep pulls out a shotgun and points it at the terrified man\’s face, finally managing to coax some words out of him. \”He\’s coming for us, Vernon Koekemoer is coming for us, we have to hide!!! We have to get out of here.\” He gets up and tries to run but the barkeep grabs him, feeling trapped in a panic he grabs the barkeeps shotgun and blows his own head off. The Englishman and the barkeep look at each other starting to really panic now.
They look out of the window and off in the distance they see a tornado coming towards the bar, at the bottom of the tornado they see the hugest beast of a man they have ever seen, as he gets closer they spot that he is riding a rhinocerous and using a crocodile as a riding whip, with each smack of the crocodile across the back of the rhino the louder is screams and the faster it runs, the tornado following it getting ever larger.
The 2 look at each other and start to fortify their position, they\’ve got a gun and they\’re waaay to drunk to run, so they start piling bar stool and tables and anything they can get their hands on to make sure they\’ll be safe when he arrives. They\’re not gonna make it, they can see the man slowing down his rhino, by now the crocodile is nothing but reptile paste on the bruised rump of the half dead rhino, the rhino drops down dead from exhaustion and crashes to the ground right outside the bar the tornado loses it\’s last breath in a cloud of dust as the huge man crashes his way through the make shift barricade and charges up towards the bar where the 2 men have taken shelter, he grabs a bottle of the hardest liquor on the shelf and down the entire litre in 1 gulp, he peers over the bar sobbing and sees the 2 defenders cowering down behind the crates of beer, they look up at the mans\’ face and he stares at them with a look of complete and utter hopelessness, he stares at them for a half second and half screams, half sobs, \”Oh my god what are you still doing here!!! WE HAVE TO GET OUT OF HERE NOW!!!! Vernon Koekemoer is coming!!!!\”
Shivers
Fun South African Fact: South Africa is home to the world’s longest wine route: Route 62. It spans an impressive 850 kilometres and the excellent wineries along the way are a must-visit for lovers of fine wine! You can even enjoy the winelands on a day trip from Cape Town. Travel 40-min to an hour outside of the city centre to enjoy decadent wine tastings and even wander through some of the beautiful wine farms and estates! Suburbs like Durbanville and Constantia are even closer to the city centre and are also home to many exceptional wineries.