[imagesource: Twitter / @SayEntrepreneur]

As we have learnt from those Russians landing themselves in hot water due to their selfies, the desire to show off one’s wealth is not limited to South Africa.

SARS won’t be too bothered about the oligarchs and their yachts. However, if you live in South Africa and your social media feeds show luxury assets, you better hope you have the payslips to justify that high life.

SARS commissioner Edward Kieswetter continues to warn South Africans that the organisation is sharpening its tools, and a snoop on your social media accounts is an option if needed.

Here’s BusinessTech:

Kieswetter said that it was clear that some people had come into money ‘too soon’ and were eager to ‘display their wealth’.

“So we look at the disconnect between the people who display this wealth, which is clearly unexplained, as well as what they have declared [to SARS]. Last year we completed 25 lifestyle audits to the value of over R450 million where there is clearly a disconnect between them. Many of them were approached and owned up without much of a fight.

“We also had 33 instances where luxury vehicles are owned by people who have either not declared any income or have declared income that does not match their expensive vehicles.”

Talk about shooting yourself in the foot.

This year, SARS will again hone in on individuals that are sitting pretty with luxury assets to make sure the lifestyle matches the tax declaration.

A reminder that enlisting the help of professionals like Galbraith | Rushby means you can rest easy knowing you’re all above board.

If you go fishing for those likes, be prepared to pay the consequences:

Tax experts have indicated that SARS is increasingly turning to third-party sources such as social media to see how people are spending.

…social media is an incredibly rich source of information, which means it’s not advisable to show off your new sports car or crypto gains while owing money to SARS.

Those worried about compliance can seek relief through the Voluntary Disclosure Programme (VDP), which encourages taxpayers to “come forward on a voluntary basis to regularise their tax affairs with SARS and avoid the imposition of understatement”.

Once SARS has decided to go ahead with a lifestyle audit, that option is no longer on the table.

Earlier this week, Kieswetter said the country’s compliance level is at about 60%, with the aim of reaching a respectable level of 90%.

[source:bustech]