Sars to investigate tax-evading religions and leaders

Johannesburg, 07 November 2016 - Racism in the workplace can cost you your job. On Tuesday South Africa’s highest court overturned a Labour Court ruling which ordered Sars to reinstate a racist employee, who used the K-word twice.​ Photo: eNCA

JOHANNESBURG – The South African Revenue Service (SARS) says it will engage with religious institutions to investigate possible tax non-compliance in this sector.

The tax authority says this decision comes after its own preliminary investigation, its meeting with the CRL Rights Commission and general reports suggesting that certain religious organisations and leaders are not in compliance with tax laws, and may be enriching themselves at the expense of tax compliance and their altruistic and philanthropic purpose.

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It says that there is also a number of religious organisations that are complying with their tax obligations.

“SARS is…concerned that proper taxes on trading activities that are unrelated to religious activities as well as Pay As You Earn (PAYE) on remuneration and other benefits are not being paid in terms of legislation,” it said in a statement.

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