It has come to light in March 2022, that the Irish Tax Authority (“ITA”) has reached out to Airbnb Ireland UC (“Airbnb”), for the disclosure of specific information, as pertains to income generated from the online accommodation booking platform, across both current and historical transactions. This arose after the South African Revenue Service (“SARS”) issued an exchange of information request to the ITA pertaining to South African resident hosts not having their Airbnb in order. The ITA actioned immediately, engaging Airbnb for the transactional lists canvassing the 2018/19 and 2019/20 tax years.
Like that found in Yin and Yang, all things must be balanced in life, which rings true even for a competent revenue authority, as the South African Revenue Service (“SARS”) has demonstrated over the last fiscal period, with Commissioner Kieswetter stating that “we strive to balance the trade-off between taxpayer service and risk management”. Not only has SARS’ collections over the last fiscal period, exceeded the budget estimate, but, accordingly to Kieswetter, SARS has also paid out a record high amount of refund, to deserving and compliant taxpayers, evidencing a balance being struck.
There is developing trend where tax practitioners and taxpayers alike cry “fear-mongering” where media releases caution against non-compliance, despite numerous statements by the South African Revenue Service (“SARS”) noting a zero-tolerance approach to any form of, willful or negligent, non-compliance. These statements are aligned with SARS Commissioner, Edward Kieswetter’s, push for the organisation’s strategic objective to make compliance simple and easy for all taxpayers, who voluntarily seek such compliance.
The South African Revenue Service (“SARS”) recently expressed its intentions to dive into its recruitment drive with renewed vigour. First on the block, is the employment of 250 young South Africans. This presents a grave concern for expats working, or planning to work, abroad. Their announcement follows a series of damning allegations of state capture against high-ranking officials who were spread across the upper tiers of government, as evidenced by the release of the Zondo Commission’s reports, which also shed light on the attempted destruction of SARS while under the control of Tom Moyane.