A forthcoming legislative change could offer relief to South African taxpayers, but only under stringent conditions. Under the proposed amendments in the 2025 Draft Tax Administration Laws Amendment Bill (TALAB), individuals and businesses may be allowed to suspend payment on estimated assessments issued by SARS, provided certain criteria are met.
Currently, when SARS issues an estimated assessment — for example, where a taxpayer fails to file or submit complete returns — taxpayers are typically obligated to pay immediately while they dispute or correct the assessment. The proposed amendment to Section 164 of the Tax Administration Act would formalise a pathway to delay that payment while challenges are underway, offering breathing room during disputes.
Another important reform would extend the scope of South Africa’s Voluntary Disclosure Programme (VDP) to cover customs and excise underpayments, which have previously been excluded. Under the new provisions, importers and manufacturers could admit to errors or understated duties, claim relief from penalties, and avoid criminal prosecution — provided the disclosure is voluntary, timely, and complete.
However, there are conditions. If SARS has already initiated an audit, investigation, or enforcement action, relief may be denied. Any omissions or incomplete disclosures could also invalidate the relief, leaving the taxpayer exposed to penalties and prosecution.
Tax practitioners caution that timing and transparency are critical. Taxpayers should act before SARS becomes aware of any discrepancies, as honesty and full disclosure are non-negotiable. Those who delay or attempt partial fixes could face full enforcement, with penalties reinstated.
