This has real consequences for anyone tempted to under-declare income — freelancers with undeclared cash payments, landlords not declaring rental income, or anyone assuming SARS "won't know." As data-matching has become more comprehensive, the practical risk of discrepancies being detected has increased significantly.
Source: SARS
Frequently Asked Questions
What kinds of institutions report data to SARS?
Banks, employers, medical schemes, retirement funds, and increasingly platforms handling rental income and investment returns are among the third parties required to report data to SARS.
Can SARS see money moving through a personal bank account?
SARS receives specific reported data, like interest earned, rather than a live view of every transaction, but it has significant legal powers to request further banking information during an audit.
What should someone do if they've under-declared income in the past?
SARS offers a Voluntary Disclosure Programme that allows taxpayers to come forward and regularise past non-compliance, often with reduced penalties compared to being caught through an audit.