The South African Revenue Service (Sars) has sent letters to 275 taxpayers who have financial assets abroad under the newly established high net wealth individual (HNWI) segment.
Sars said: “We are making steady progress to improve our capability to detect and respond to non-compliance.”
Commissioner Edward Kieswetter told local media that, as of 1 July, 108 of the 275 taxpayers have responded to the tax service, some have updated their information, while others have requested more time.
Kieswetter added: “This activity is gaining momentum. Sars is aware of the increasing number of South Africans who have financial assets offshore, they have more than ZAR400bn (£20bn, $28bn, €23.5bn) in offshore accounts. We’ve identified around 10% of that, but we believe there’s still a lot to be explained.”
In February 2021, Sars set up a separate wealth unit to focus on individual taxpayers with wealth and complex financial arrangements.
At the time, the South African government body said that it will be assessing wealth “derived from multiple sources” and these individuals “employ complex, and often offshore, financial arrangements”.
