Is it working?

SARS has been able recover R210bn for the first 11 months of the 2023/24 tax year with the help of AI and proactive measures (with R70bn of this coming from AI/debt propensity algorithms). With the help of AI, SARS is also monitoring cryptocurrency traders. In the 2024 budget, the finance minister highlighted that through the use of AI in its fraud risk detection and verification work, SARS had been able to prevent the leakage of over R95bn in impermissible refunds, recovered R20bn in revenue and dismantled an illicit tobacco and gold scheme. In communicating its 2025/26 revenue collection, in April 2026, SARS cited AI as one of the key compliance drivers for the year.

Actions

In 2023, SARS was allocated R1bn over three years for its modernisation programme. It is now expanding this strategy to also target non-compliant owners of crypto assets. In the 2025 budget, SARS was allocated R7.5bn over the MTEF, part of which is meant for collections of debts and to improve modernisation. AI forms part of SARS' modernisation journey from 2024. In 2024/25, SARS continued to integrate advanced data analytics, machine learning, and artificial intelligence into its risk-detection processes.

Are there plans?

Following recorded success, SARS continues to seek potential employees skilled in data science and AI. SARS' focus in 2025/26 will be on addressing the tax gap to improve revenue collection. This will be done by improving taxpayer compliance and trade facilitation by leveraging AI and data science. Using AI to detect non-compliance remains part of SARS' collection efforts. AI is baked into SARS' strategy as per annual performance plans - artificial intelligence strategies will enhance treasury and risk management. As one of its eight transformational programmes contained in its 2026/27 performance plan, SARS plans to "prepare and upskill our staff to coexist with Artificial Intelligence". AI is also a pillar of SARS' Strategic Objective 5, and the entity plans to use it alongside data and data analytics to understand the compliance behaviour of taxpayers and traders. SARS however warns that budgetary constraints threaten its AI implementation agenda.

Is it on the agenda?

SARS has placed AI at the centre of its efforts to maximise, modernise and optimise revenue collection.

Goals

Deploy AI and machine learning algorithms to trace criminality and tax non-compliance.

Departments / Govt Institutions

Test One