How SARS Is Getting Smarter About Penalties – And What That Means for Your Clients

It’s no secret that SARS has been tightening the screws. And while we've always had to deal with penalties, interest, and admin headaches, there’s been a noticeable shift: SARS is getting smarter, faster, and far more automated in how they issue penalties.

What used to be manual delays and human error has turned into automated accuracy, and unfortunately for clients who are disorganised or consistently late, it means there’s less wiggle room and more consequences.

For accountants, this changes the game.

We’re seeing penalties landing even before clients realise they’ve missed a deadline. Provisional taxpayers who once shrugged off admin have started receiving unexpected bills, sometimes large ones, because SARS systems now cross-reference submissions, income, and declarations quicker than ever.

And it’s not just provisional tax. VAT, PAYE, even non-submissions, it’s all under the microscope. Systems are flagging late payments, mismatches, and omissions automatically, and the turnaround is lightning-fast. There’s less grace. Less room to appeal. And once those admin penalties rack up, it becomes your problem to explain.

So what can you do about it?

Start by treating deadlines as non-negotiable, especially for those clients who are prone to last-minute chaos. Build in earlier cut-offs for receiving documents. Automate your reminders. Categorise clients by risk: those who always deliver on time, those who mean well but need pushing, and those who are guaranteed to drag their feet.

This isn’t about being tough, it’s about being realistic.

When SARS can issue a penalty overnight based on system data, you can’t afford to wait around for client documents that arrive a day before the deadline.

It’s also worth educating your clients more proactively. Don’t assume they understand the impact of a missed submission. Most don’t. And when the penalty hits, they’ll still ask why you didn’t warn them, despite four reminder emails and two WhatsApps.

You’re not just protecting them. You’re protecting your practice’s time, your staff’s sanity, and your relationship with the revenue authority. The fewer penalty disputes you need to deal with, the more time you can spend on the work that actually matters.

SARS isn’t getting more forgiving; they’re getting more efficient. And as the systems get sharper, we as accountants need to stay one step ahead.

The best defence? Process. Early action. And helping clients understand that this isn’t just tax season anymore, it’s year-round accountability.