Crackdown on Non-Compliant Businesses: Are You Ready for a SARS Audit in 2025?

The South African Revenue Service (SARS) has made it clear: 2025 is the year of enforcement and compliance. With a growing tax gap and increased pressure to boost collections, SARS is ramping up its use of data-driven risk profiling and AI-assisted audit selection. This means non-compliant businesses are at higher risk than ever of facing audits, penalties, and criminal charges.

Is your business ready?

🚨 Why the Pressure from SARS Is Increasing

In recent statements, SARS Commissioner Edward Kieswetter confirmed that the agency will intensify efforts to combat tax evasion and under-declaration—particularly among small to medium enterprises (SMEs).

Some of the key triggers for SARS audits in 2025 include:

• Discrepancies between VAT, PAYE, and Income Tax submissions

• Mismatches with third-party data (banks, medical aids, CIPC)

• Inconsistent or negative gross profit margins

• Late or missing tax returns

• High refunds relative to income declared

If your business checks any of these boxes, you may already be on SARS’s radar.

🧠 What an Audit Could Mean for Your Business

A SARS audit can be time-consuming, stressful, and financially risky. Common consequences include:

• Penalties and interest on understated taxes

• Criminal prosecution for false declarations

• Account freezes and collections by SARS if amounts remain unpaid

• Long-term damage to your tax compliance profile and public standing

✅ How to Prepare and Stay Compliant

To reduce your risk and ensure readiness for any review, consider the following steps:

1. Reconcile All Tax Accounts Regularly - Ensure that your VAT, PAYE, and provisional tax submissions match your accounting records.

2. Keep Supporting Documentation - SARS expects you to retain records (invoices, bank statements, payroll data) for at least five years.

3. File Returns on Time - Late returns raise red flags. Submit all returns timeously, even if no tax is payable.

4. Disclose Honestly - Declare all income—including side hustles, crypto, rental, and offshore earnings.

5. Get Professional Help - Work with a registered tax practitioner who understands SARS processes and can represent you if needed.

🛡️ How Horizon Trading Solutions Can Help

At Horizon Trading Solutions, we specialize in helping businesses stay ahead of SARS requirements. Our team offers:

• Full tax compliance reviews

• Audit readiness assessments

• Monthly reconciliation and return submissions

• Representation and communication with SARS during audits

• Long-term planning to reduce risk and optimize tax outcomes

Whether you’re just starting out or scaling rapidly, we ensure your tax affairs are airtight.

Conclusion: SARS has never been more equipped or determined to detect non-compliance. Don’t leave your business vulnerable. Take control now with Horizon Trading Solutions—your partner in tax integrity and peace of mind.

📩 Contact us today for a compliance check-up or audit readiness review.