Summary
Lifestyle audits are conducted by SARS' Specialised Audit unit. The unit focuses on individuals, businesses and related entities in the small and medium sector of the taxpayer/trader base, particularly those operating within the illicit economy. Ultimately, SARS seeks to improve voluntary compliance of taxpayers and traders by conducting comprehensive, integrated in-depth civil audits.
View DetailsIs it working?
The Specialised Audit Unit has in recent years successfully pursued taxpayers suspected of underpaying. It completed 4,034 audit cases for the 2022/23 financial year worth a total of R13.2bn. The unit completed 24 lifestyle audit cases with a total assessment value of R232.3m and the high wealth individual unit collected R2.7bn. In 2023/24, the Specialised Audit Unit completed 3,335 audit cases worth R28.9bn in assessments raised. The success rate of in-depth audits was 93% and 66% for standard audits, equating to R14.4bn in revenue.
Actions
SARS continues to use lifestyle audits to reconcile individuals' lifestyles with their tax declarations. In addition, the High Wealth Individuals (HWI) unit was established in 2021 to help optimise the audit process.
Are there plans?
The unit is now functioning efficiently and plans to continue conducting more lifestyle audits to ensure SARS's revenue collection efforts are not undermined. SARS indicated that it is upskilling auditors in base erosion and profit shifting and the general anti-avoidance rule )as applied to small and medium enterprises.
Is it on the agenda?
SARS initiated lifestyle audits in 2007 but only began to conduct these with purpose after the appointment of Commissioner Edward Kieswetter in 2019.
Goals
SARS conducts lifestyle audits on taxpayers it suspects have understated their taxes.
Summary
Lifestyle audits are conducted by SARS' Specialised Audit Unit. The unit focuses on individuals, businesses and related entities in the small and medium sector of the taxpayer/trader base, particularly those operating within the illicit economy. Ultimately, SARS seeks to improve voluntary compliance of taxpayers and traders by conducting comprehensive, integrated in-depth civil audits.
View DetailsIs it working?
The Specialised Audit Unit has in recent years successfully pursued taxpayers suspected of underpaying. It completed 4,034 audit cases for the 2022/23 financial year worth a total of R13.2bn. The unit completed 24 lifestyle audit cases with a total assessment value of R232.3m and the high wealth individual unit collected R2.7bn. In 2023/24, the Specialised Audit Unit completed 3,335 audit cases worth R28.9bn in assessments raised. The success rate of in-depth audits was 93% and 66% for standard audits, equating to R14.4bn in revenue.
Actions
SARS initiated lifestyle audits in 2007 but only began to conduct these with purpose after the appointment of Commissioner Edward Kieswetter in 2019.The unit is now functioning efficiently and plans to continue conducting more lifestyle audits to ensure SARS's revenue collection efforts are not undermined. SARS indicated that it is upskilling auditors in base erosion and profit shifting and the general anti-avoidance rule as applied to small and medium enterprises. In addition, the High Wealth Individuals (HWI) unit was established in 2021 to help optimise the audit process.
Are there plans?
Initially targeting the illicit and informal economies as well as the SME sector, SARS expanded this to include high net worth indivuduals, targeting non-compliant taxpayers.
Is it on the agenda?
Part of SARS' strategy to boost tax revenue through increased compliance, lifestyle audits are in effect.
Goals
To promote voluntary compliance and crack down on non-compliant taxpayers and tax evaders.
Summary
Lifestyle audits are conducted by SARS' Specialised Audit Unit. The unit focuses on individuals, businesses and related entities in the small and medium sector of the taxpayer/trader base, particularly targeting those operating within the illicit economy. Ultimately, SARS seeks to improve voluntary compliance of taxpayers and traders by conducting comprehensive, integrated in-depth civil audits.
View DetailsIs it working?
The Specialised Audit Unit has in recent years successfully pursued taxpayers suspected of underpaying. It completed 4,034 audit cases for the 2022/23 financial year worth a total of R13.2bn. The unit completed 24 lifestyle audit cases with a total assessment value of R232.3m and the high wealth individual unit collected R2.7bn. In 2023/24, the Specialised Audit Unit completed 3,335 audit cases worth R28.9bn in assessments raised. The success rate of in-depth audits was 93% and 66% for standard audits, equating to R14.4bn in revenue.
Actions
SARS initiated lifestyle audits in 2007 but only began to conduct these with purpose after the appointment of Commissioner Edward Kieswetter in 2019.The unit is now functioning efficiently and plans to continue conducting more lifestyle audits to ensure SARS's revenue collection efforts are not undermined. SARS indicated that it is upskilling auditors in base erosion and profit shifting and the general anti-avoidance rule as applied to small and medium enterprises. In addition, the High Wealth Individuals (HWI) unit was established in 2021 to help optimise the audit process.
Are there plans?
Initially targeting the illicit and informal economies as well as the SME sector, SARS expanded this to include high net worth indivuduals, targeting non-compliant taxpayers.
Is it on the agenda?
Part of SARS' strategy to boost tax revenue through increased compliance. Lifestyle audits are in effect.
Goals
To promote voluntary compliance and crack down on non-compliant taxpayers and tax evaders.
Summary
Lifestyle audits are conducted by SARS' Specialised Audit Unit. The unit focuses on individuals, businesses and related entities in the small and medium sector of the taxpayer/trader base, particularly targeting those operating within the illicit economy. Ultimately, SARS seeks to improve voluntary compliance of taxpayers and traders by conducting comprehensive, integrated in-depth civil audits.
View DetailsIs it working?
The Specialised Audit Unit has in recent years successfully pursued taxpayers suspected of underpaying. It completed 4,034 audit cases for the 2022/23 financial year worth a total of R13.2bn. The unit completed 24 lifestyle audit cases with a total assessment value of R232.3m and the high wealth individual unit collected R2.7bn. In 2023/24, the Specialised Audit Unit completed 3,335 audit cases worth R28.9bn in assessments raised. The success rate of in-depth audits was 93% and 66% for standard audits, equating to R14.4bn in revenue. In 2024/25, SARS completed 237 lifestyle audit cases valued at R1.8bn. The Specialised Audit Unit completed 3,757 broader audit cases, resulting in assessments amounting to R46bn.
Actions
SARS initiated lifestyle audits in 2007 but only began to conduct these with purpose after the appointment of Commissioner Edward Kieswetter in 2019.The unit is now functioning efficiently and plans to continue conducting more lifestyle audits to ensure SARS's revenue collection efforts are not undermined. SARS indicated that it is upskilling auditors in base erosion and profit shifting and the general anti-avoidance rule as applied to small and medium enterprises. In addition, the High Wealth Individuals (HWI) unit was established in 2021 to help optimise the audit process.
Are there plans?
Initially targeting the illicit and informal economies as well as the SME sector, SARS expanded this to include high net worth indivuduals, targeting non-compliant taxpayers.
Is it on the agenda?
Part of SARS' strategy to boost tax revenue through increased compliance. Lifestyle audits are in effect.
Goals
To promote voluntary compliance and crack down on non-compliant taxpayers and tax evaders.
Summary
Lifestyle audits are conducted by SARS' Specialised Audit unit. The unit focuses on individuals, businesses and related entities in the small and medium sector of the taxpayer/trader base, particularly those operating within the illicit economy. Ultimately, it seeks to improve voluntary compliance of taxpayers and traders by conducting comprehensive, integrated in-depth civil audits.
View DetailsIs it working?
The Specialised Audit unit has in recent years successfully pursued taxpayers suspected of underpaying. It completed 4,034 audit cases for the 2022/3 financial year worth a total of R13.2bn. The unit completed 24 lifestyle audit cases with a total assessment value of R232.3m and the high wealth individual unit collected R2.7bn.
Actions
SARS continues to use lifestyle audits to reconcile individuals' lifestyles with their tax declarations. In addition, the High Wealth Individuals (HWI) unit was established in 2021 to help optimise the audit process.
Are there plans?
The unit is now functioning efficiently and plans to continue conducting more lifestyle audits to ensure SARS's revenue collection efforts are not undermined.
Is it on the agenda?
SARS initiated lifestyle audits in 2007 but only began to conduct these with purpose after the appointment of Commissioner Edward Kieswetter in 2019.
Goals
SARS requires the ability to conduct lifestyle audits on taxpayers it suspects of underpaying.
Summary
According to government, as of March 2023, more than 11,000 public servants in national government had undergone lifestyle audits. The number of national departments that have started conducting lifestyle audits has improved – from 24 (in 2021/2022) to 36 (in 2022/2023), while the number of provincial departments conducting lifestyle audits has also improved – from 71 (in 2021/2022) to 89 (in 2022/2023). By March 2023, 7,856 members of the senior management service had been subjected to lifestyle reviews (the first step to lifestyle audits) and of these, 157 cases were referred for lifestyle investigation by various departments (the second step).
View DetailsIs it working?
Implementation is under way but progress is slow. Government has admitted that it is yet to evaluate whether conducting lifestyle audits in the public service is effective in preventing and detecting fraud and corruption. About 200 senior management members' reviews were referred for investigation in the 2023/24 financial year.
Actions
During the first year of implementation (2021/2022), which focused on capacity building, more than 200 ethics officers in the public service were trained in conducting lifestyle reviews. For 2023/2024 government focus has been on capacitating investigators in the public service on how to conduct lifestyle investigations. In May 2024, more than 120 lifestyle audit investigators from national departments and more than 175 from provincial departments received specialised training.
Are there plans?
The ultimate plan is to roll out audits to municipal employees. Recently, Parliament’s Joint Committee on Ethics and Members Interests recommended that presiding officers of both houses, chairpersons of all committees, chief whips of all political parties, any MP that has been red-flagged by the e-disclosure system and any MP identified by the joint committee, be subjected to lifestyle audits.
Is it on the agenda?
In 2021, government adopted guidelines for lifestyle audits of public servants in both national and provincial departments and state-owned enterprises.
Goals
Lifestyle audits are meant to prevent and detect fraud and corruption in the public service and to ensure that the lifestyles of government employees are in line with their level of income.
Summary
Lifestyle audits are conducted by SARS' Specialised Audit unit. The unit focuses on individuals, businesses and related entities in the small and medium sector of the taxpayer/trader base, particularly those operating within the illicit economy. Ultimately, SARS seeks to improve voluntary compliance of taxpayers and traders by conducting comprehensive, integrated in-depth civil audits.
View DetailsIs it working?
The Specialised Audit Unit has in recent years successfully pursued taxpayers suspected of underpaying. It completed 4,034 audit cases for the 2022/3 financial year worth a total of R13.2bn. The unit completed 24 lifestyle audit cases with a total assessment value of R232.3m and the high wealth individual unit collected R2.7bn.
Actions
SARS continues to use lifestyle audits to reconcile individuals' lifestyles with their tax declarations. In addition, the High Wealth Individuals (HWI) unit was established in 2021 to help optimise the audit process.
Are there plans?
The unit is now functioning efficiently and plans to continue conducting more lifestyle audits to ensure SARS's revenue collection efforts are not undermined.
Is it on the agenda?
SARS initiated lifestyle audits in 2007 but only began to conduct these with purpose after the appointment of Commissioner Edward Kieswetter in 2019.
Goals
SARS conducts lifestyle audits on taxpayers it suspects have understated their taxes.
Summary
According to government, by July 2024, 147 out of 160 national and provincial departments had finalised their lifestyle audits. As of March 2023, more than 11,000 public servants in national government had undergone lifestyle audits. By March 2023, 7,856 members of the senior management service had been subjected to lifestyle reviews. The audit process includes three phases - lifestyle review, lifestyle investigation, and lifestyle audit(quantification and evaluation).
View DetailsIs it working?
Government has admitted that it is yet to evaluate whether conducting lifestyle audits in the public service is effective in preventing and detecting fraud and corruption. About 200 senior management services members' (SMS) reviews were referred for investigation in the 2023/24 financial year. By September 2024, government reported that 191 SMS members - seven from national departments and 20 from provincial departments - were referred for investigations, including cases of conflicts of interest, unexplained wealth and conducting business with the state.
Actions
During the first year of implementation (2021/2022), which focused on capacity building, more than 200 ethics officers in the public service were trained in conducting lifestyle reviews. For 2023/2024 government focus has been on capacitating investigators in the public service on how to conduct lifestyle investigations. In May 2024, more than 120 lifestyle audit investigators from national departments and more than 175 from provincial departments received specialised training.
Are there plans?
The ultimate plan is to roll out audits to municipal employees. Recently, Parliament’s Joint Committee on Ethics and Members Interests recommended that presiding officers of both houses, chairpersons of all committees, chief whips of all political parties, any MP that has been red-flagged by the e-disclosure system and any MP identified by the joint committee, be subjected to lifestyle audits. In Gauteng, premier Panyaza Lesufi announced in August 2024 that lifestyle audits of all HODs and CEOs of Gauteng Provincial Government agencies had been completed and will be made public. In October 2024, the Portfolio Committee on Police also recommended regular lifestyle audits for SAPS senior management.
Is it on the agenda?
In 2021, government adopted guidelines for lifestyle audits of public servants in both national and provincial departments and state-owned enterprises.
Goals
Lifestyle audits are meant to prevent and detect fraud and corruption in the public service and to ensure that the lifestyles of government employees are in line with their level of income.