With the year winding down and 2026 on the horizon, the South African Revenue Service (SARS) is shifting gears. Following the decision earlier this year to scrap the controversial Value Added Tax (VAT) increase, the Treasury has been left with a fiscal gap estimated at around R75 billion.
To plug this hole without overburdening the compliant, the focus has firmly shifted to collecting what is already owed. Here is what you need to know about the intensified collection drive and how to prepare for the new year.
The “Low-Hanging Fruit” Strategy
Rather than introducing new taxes, the current strategy involves a massive recruitment drive. Hundreds of new agents are reportedly being onboarded with a single mandate: to pursue outstanding, undisputed tax revenue.
Dubbed “Project AmaBillions,” this initiative targets the estimated R300 billion in outstanding taxes currently sitting in the system. The goal is to recover a significant portion of this by targeting “easy wins”; specifically, taxpayers who have declared their income but simply haven’t paid, or those with outstanding returns.
Expect the Phone to Ring
Technology is great, but the revenue service is finding that the personal touch is harder to ignore. A major part of this new compliance blitz involves manual interaction. Taxpayers can expect an increase in direct phone calls designed to “nudge” them into settling their debts.
The logic is sound: it is much harder to ignore a human being on the line than an automated SMS or email.
Compliance Before New Taxes
The general consensus among financial experts is that this crackdown is necessary. Before the state considers levying new taxes on the public, it must ensure that the current system is efficient. The priority is to close the “tax gap” by pursuing the millions of outstanding returns and ensuring that non-compliant taxpayers pay their fair share.
What If You Can’t Pay?
If you find yourself in the crosshairs of this collection drive as we enter 2026, it is important not to panic or ignore the problem.
While the drive for collection is aggressive, the revenue service generally remains open to engagement. In practice, there is often room for negotiation regarding payment arrangements. For those facing genuine financial distress, mechanisms exist to discuss debt compromises or write-offs, provided the hardship can be proven.
The Bottom Line
As we approach 2026, the era of flying under the radar is ending. If you have outstanding returns or undisputed debt, the best strategy is proactive engagement. Clear the slate now, before you become part of the “AmaBillions” target list in the new year.
Take Control of Your Tax Health Before 2026
As we head into the new year, the cost of non-compliance is higher than ever. Don’t wait for that phone call to resolve your tax matters. Whether you need to regularise your affairs, find a registered tax practitioner, or seek professional advice on how to manage outstanding debt, having the right support is crucial. Ensure you are protected and fully informed today for expert resources and guidance from SAIT.