SARS steps up debt collection as unpaid tax bill hits R532bn

South Africa’s revenue service is stepping up efforts to recover unpaid taxes, with taxpayers facing tougher enforcement measures that can include money being taken directly from their bank accounts.

The South African Revenue Service’s undisputed debt collection pool reached R532 billion in July 2026, up from R407.9 billion in March 2025, according to data cited by Jashwin Baijoo, partner and head of strategic engagement and compliance at Tax Consulting South Africa.
Baijoo said the increase of R124 billion reflects a growing pool of unpaid tax, including large outstanding liabilities and administrative penalties owed by non compliant taxpayers.

“SARS no longer send Letters of Demand and then forgets about the taxpayers for months or years,” Baijoo said.
Instead, the revenue service is increasingly using its data and detection systems to identify taxpayers who have failed to settle their obligations and pursue collection through available legal channels.

Under the process, taxpayers who fail to pay or engage with SARS within 10 business days can face further enforcement.
One option is a third party appointment, which allows SARS to instruct a bank or another party holding money belonging to the taxpayer to pay the outstanding amount directly to the revenue service.

“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,” Baijoo said.

SARS can also seek a civil judgment for the outstanding debt. If granted, the matter moves into formal legal enforcement, which can include the Sheriff attaching and selling the taxpayer’s assets.

“This progression is significant because enforcement action can materially affect a taxpayer’s ability to manage its affairs,” Baijoo said.
The risks are particularly serious for owners and managers of businesses that fail to comply with their tax obligations. People who control or are regularly involved in managing a company’s financial affairs can, in certain circumstances, become personally responsible for outstanding tax liabilities.

The sharper collection drive reflects SARS’s broader push to improve tax compliance and recover revenue owed to the state, as it seeks to close gaps in tax collection and strengthen public finances.