Sponsored Content

BUSINESS NEWS - In November 2025, social media posts and videos spread rumours that SARS had launched a "real-time data integration system" to track every bank deposit, digital wallet activity, or side-hustle income instantly. 

These claims alleged it would detect undeclared income, capital gains, or interest immediately, reducing the need for audits.

However, tax experts like André Bothma (a specialist in tax and AI) have clarified that these assertions are unfounded:

• There is no legislation (e.g., no amendments to the Tax Administration Act 28 of 2011) authorising real-time monitoring of private bank accounts.
• No official SARS announcement, funding, procurement, or rollout of such a system exists.
• Even SARS's ongoing VAT modernisation project (which may introduce near-real-time e-invoicing for businesses) is years away from implementation and doesn't extend to personal income tax or bank monitoring.

Credible outlets, including Jacaranda FM, The Citizen, and Rekord, have reported that banks submit third-party data to SARS on a scheduled basis—not in real time. This data includes details like interest earned, deposits, and loans, but it's aggregated and reported periodically (e.g., every six months or quarterly), allowing SARS to analyse it retrospectively using AI tools.

One outlier article from SouthAfriWorld echoed the rumour but provided no evidence of implementation and was contradicted by follow-up debunking’s from the same site, emphasizing that data sharing is "not time-stamped transaction by transaction in real-time."

What SARS can do with bank data

While real-time monitoring isn't possible, SARS has significant powers under the Tax Administration Act (TAA) and related regulations to access and use banking information for tax enforcement.

? Banks must report account details, interest, deposits, withdrawals, and loans to SARS. This helps cross-check declared income against actual cash flow.

? SARS can demand bank statements or transaction details during an audit or investigation, often without prior notice.

? If you owe taxes, SARS can instruct banks to freeze or debit your account directly.

? SARS uses data analytics to flag inconsistencies (e.g., high deposits vs. low declared income), leading to audits.

SARS has used this data to recover R301.5 billion in compliance revenue in the 2024/25 fiscal year by targeting non-compliance. In audits, discrepancies between tax returns and bank deposits can trigger penalties, interest, or criminal charges for underreporting.

Implications for taxpayers

• Keep records: Maintain clear separation between personal and business accounts to avoid red flags. Undeclared side-hustle income (e.g., from Uber or rentals) is increasingly detectable through periodic data.
• Voluntary disclosure: If you're concerned about past non-compliance, SARS's Voluntary Disclosure Programme (VDP) offers penalty relief for self-correction.
• Future changes: While no real-time system exists, SARS is investing in digital tools. Monitor official updates via sars.gov.za or eFiling.

We always love to speak property to you, but for personalised tax advice, consult a registered tax practitioner (we know people), or visit a SARS branch. Call our office on 044 – 220 0240 for a free first consultation.

‘We bring you the latest Garden Route, Hessequa, Karoo news’