Finance · South Africa
Sars Uses AI to Improve Tax Compliance in South Africa
Moneyweb · 2026/01/31
Summary
South Africa's Revenue Service (Sars) is modernizing its operations with a new phase called Modernisation 3.0, focusing on using automation and artificial intelligence (AI) to improve tax compliance. This upgrade helps Sars quickly identify taxpayers who may not be following tax laws correctly. By using advanced technology, Sars can target audits more efficiently, making it harder for tax evaders to go unnoticed. The goal is to encourage more voluntary compliance, where individuals and businesses pay the right amount of tax without needing enforcement. This move reflects a global trend where tax authorities use AI to reduce fraud and improve collection of public revenue, which supports government services and development.
OnABudget takeaway: For taxpayers and businesses, it's more important than ever to keep accurate records and stay compliant with tax rules to avoid penalties. Investors and small business owners should be aware that Sars' stronger, tech-driven checks mean less room for error or tax avoidance.