SARS can take money directly from South Africans’ bank accounts

The South African Revenue Service (SARS) is ramping up its debt collection, which can include taking money from taxpayers’ bank accounts.

This is the warning from Jashwin Baijoo, partner and head of strategic engagement and compliance at Tax Consulting SA.

Baijoo said that the July 2026 SARS Debt Collection Data revealed an increased collection pool of R532 billion on undisputed debt.

This collection pool comprised multi-million-rand debts and negligent taxpayers who owe administrative penalties.

SARS’s undisputed debt book has increased by R124 billion since March 2025, when it stood at R407.9 billion.

This has forced the South African Revenue Service to act, and it has ramped up collection of the money it is owed.

“SARS no longer send Letters of Demand and then forgets about the taxpayers for months or years,” Baijoo said.

Instead, the revenue service uses its enhanced detection capabilities and data-driven insights to collect the R532 billion owed.

“SARS are taking full advantage of the statutory mechanisms available to it to recover amounts which remain unpaid,” he said.

If a taxpayer does not make a payment or engage with SARS within 10 business days, the issue is escalated.

One of the actions is issuing a third-party appointment requiring a debtor or a bank holding the taxpayer’s money to pay that amount over to SARS.

“This can have an immediate impact on a taxpayer’s liquidity, and often, there is no further notice to the taxpayer, beyond the letter of final demand,” he said.

SARS may also pursue a civil judgment of outstanding liability. Once judgment has been obtained, the taxpayer is dealing with a formal legal enforcement process.

This formal legal enforcement process can involve the Sheriff arriving to attach and sell the taxpayer’s assets.

“This progression is significant because enforcement action can materially affect a taxpayer’s ability to manage its affairs,” Baijoo said.

Owners of non-compliant businesses face a particularly significant risk, as they become personally responsible for this money.

This applies to any person who controls, or is regularly involved in, the management of the company’s financial affairs.