SARS Warns South Africans: Your Bank Account Could Be Targeted Over Unpaid Tax Debt
- SARS's undisputed debt book reached R532 billion in July 2026, and the revenue service is now using data-driven systems to chase outstanding amounts
- Taxpayers who ignore a final demand have just 10 business days before SARS can instruct a bank to redirect funds directly to the revenue service
- Assets could be attached and sold by the Sheriff if SARS obtains a civil judgment against a non-compliant taxpayer
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SOUTH AFRICA - South African taxpayers who ignore outstanding tax debts are running out of time. The South African Revenue Service (SARS) is now actively using legal mechanisms to recover money owed, including going directly to people's banks.
According to Newsday, the warning comes from Jashwin Baijoo, partner and head of strategic engagement and compliance at Tax Consulting SA. He said SARS's July 2026 debt collection data showed the revenue service was sitting on an undisputed debt pool of R532 billion, covering unpaid taxes and administrative penalties.
SARS debt book grew by R124 billion
The size of the debt book tells its own story. In March 2025, it stood at R407.9 billion. By July 2026, it had climbed by R124 billion.
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Baijoo noted that SARS had moved away from simply sending letters and waiting. The revenue service is now using data-driven detection tools to identify and act on unpaid debts far more quickly than before.
What happens if you ignore a SARS demand
Once a taxpayer receives a final demand, they have 10 business days to either pay or engage with SARS. Missing that window opens the door to enforcement.
One of the tools available to SARS is a third-party appointment. This allows SARS to instruct a bank holding a taxpayer's funds to pay the outstanding amount directly to the revenue service. In practice, that means money could leave a bank account without the taxpayer initiating the transfer.
Baijoo said the impact on cash flow could be immediate, and that the final demand may be the last notification a taxpayer receives before SARS acts.
Beyond bank accounts, SARS can also pursue a civil judgment for unpaid tax. If that judgment is granted, the matter enters a formal legal enforcement process. The Sheriff can then attach and sell a taxpayer's assets to recover what is owed.
Business owners face an additional risk. In certain circumstances, owners of non-compliant companies may be held personally liable, particularly where they are directly involved in managing the company's finances.
Baijoo's advice was straightforward: respond to SARS demands early and address any outstanding liabilities before enforcement begins.
SARS auto-assessed 1.3 million South Africans
Previously, Briefly News reported that SARS auto-assessed more than 1.9 million South African taxpayers this filing season and paid around R8 billion in refunds within 72 hours. Taxpayers who were auto-assessed were advised that they can submit a corrected return via eFiling from 13 July until 23 October 2026. A financial expert warned South Africans that retirement annuity deductions are among the most commonly missed items in auto-assessments.
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Source: Briefly News
