The South African Revenue Services (SARS) has refunded approximately R10 billion to 1.6 million taxpayers who were auto-assessed as the 2024 tax season kicks off. This reflects the efficient use of AI and third-party data to streamline tax assessments and fraud detection. The South African Revenue Services (SARS) has made significant strides in the 2024 tax season by issuing nearly R10 billion in refunds to about 1.6 million taxpayers who were auto-assessed. In the first two weeks of July, SARS auto-assessed approximately five million taxpayers, demonstrating the organization’s commitment to leveraging technology for efficiency.
SARS Commissioner Edward Kieswetter revealed that the tax assessments were processed in conjunction with the agency’s compliance risk and tax fraud detection capabilities. This dual approach ensures that the assessments are not only accurate but also secure against fraudulent activities.
Kieswetter credited the success of this operation to SARS’s investment in third-party data over recent years. “We’re able to process over 90% of refunds for taxpayers that are not selected for verification within 72 hours through our fraud risk detection AI,” he said. For high-risk cases, where potential fraud or impermissible refunds are suspected, additional verification is required.
The auto-assessment process hinges on the collection and analysis of around 150 million third-party data records. This sensitive data is processed using AI and enhanced machine learning algorithms, which are pivotal in maintaining the integrity and accuracy of tax assessments.
“We are extremely reliant on employers, banks, and other third-party information providers to provide us with accurate data. The integrity of the entire value chain of data is important,” Kieswetter emphasized. SARS has collaborated extensively with large institutions to enhance the accuracy of bulk data submissions, further ensuring the reliability of the auto-assessment process.
Moreover, SARS employs sophisticated graph database technology to analyze vast amounts of data, creating a comprehensive view of each taxpayer. This technology facilitates accurate assessment outcomes and robust risk detection through advanced AI methodologies.
By the end of March 2024, SARS had collected a record amount of R2.16 trillion, showcasing the agency’s effective tax collection strategies.
For taxpayers who have accepted the auto-assessment process, refunds are expected to be paid within 72 hours from the issuance of the auto-assessment on eFiling or the SARS MobiApp, provided that all banking details are correct, and no further verification is needed.
“If your banking details are correct, there are no outstanding returns, and no verification required by SARS, your refund will be paid within 72 hours of issuing the Notice of Assessment,” the revenue service assured.