South Africa Is Ramping Up Its Crypto Tax Reporting Compliance Programs

SARS Has Established A Dedicated Crypto Audit Unit

The South African Revenue Service (SARS) is intensifying its efforts to target cryptocurrency holders who have neglected to declare their crypto transactions on recent tax filings.

A dedicated crypto asset unit within SARS' audit division has begun sending notices to taxpayers who have omitted their cryptocurrency activities and their resulting tax liabilities from dealings on various crypto exchanges.

Thomas Lobban, director at Ibex Consulting (a part of Latita Africa), explained that these audits generally span the last five years, although SARS can extend its investigations further if necessary. The agency uses data obtained from crypto exchanges and compares it with filed tax returns to spot inconsistencies and pinpoint individuals for deeper review.