The South African Revenue Service (Sars) has opened a formal channel with one of its largest corporate taxpayers — part of a group that paid R600bn in 2024/25 — as it seeks to rebuild credibility and stabilise the second-largest source of state revenue with more predictable, sector-by-sector collections.
Sars’ new large business forum (LBF) comes as the tax collection agency continues rebuilding after the state capture years almost killed the “goose that laid the golden egg”.
For finance minister Enoch Godongwana, rebuilding specialised engagement with large companies and multinationals could be the fastest way to stabilise receipts and reduce costly deficits.
For CFOs, regular conversations beat surprise audits and mean less cash is tied up in litigation. Sasol and Adidas are in court over multibillion-rand battles that have exposed how fragile South Africa’s tax take can be. Earlier in 2025, Coronation won a long-running wrangle with Sars over controlled foreign company rules in the Constitutional Court.
“The forum is part of Sars’ strategic intent to foster voluntary compliance and strengthen the relationship with South Africa’s largest corporate taxpayers. By establishing this platform, Sars aligns with international best practice, prioritising proactive engagement and collaboration with major corporations,” the agency said
“By establishing predictable points of contact, Sars enables businesses in this fast-changing digital environment [with] the opportunity to address concerns quickly and efficiently.”
“Given the complexity of corporate tax matters, Sars works closely with these corporations and their tax advisers to simplify and find solutions to tax-related challenges. This collaboration deepens understanding, builds trust and strengthens the partnership between Sars, businesses and their advisers.”
By establishing predictable points of contact, Sars enables businesses in this fast-changing digital environment [with] the opportunity to address concerns quickly and efficiently
— SA Revenue Service
The tax affairs of large corporates and high-net-worth individuals are highly complex, and their risk profiles differ vastly from those of ordinary taxpayers. The potential loss to the fiscus is substantial if they are not managed properly.
Companies listed on the JSE belong to the LBF. A large business is also defined as having a turnover exceeding R1bn or as a multinational enterprise, including e-commerce or foreign electronic service providers, according to Sars.
Mining companies are treated differently — those with turnover exceeding R500m belong in this segment. According to data released by Investec last week, businesses in South Africa with a turnover of R30m-R1.5bn number about 525,000.
The LBF, headed by Natasha Singh, will, among other things, facilitate the sharing of perspectives and challenges through sector-focused forums and enable the agency to raise concerns over compliance risks, aggressive tax planning and illicit activities.
Sars commissioner Edward Kieswetter has said: “True tax compliance is not necessarily enforced but understood within the recognition that the fiscal resources tax provides enable economic activity and fund social services, particularly for the most vulnerable. Compliance becomes voluntary when it is earned through mutual trust, professionalism, ethical engagement and genuine partnership.”
He added: “By working together with our largest contributors and their advisers, we build a tax system that is not only robust but also fair and responsive to the needs of our nation.”
Kieswetter was the founding executive of the large business centre (LBC) in his previous stint with Sars, in line with global best practice to focus on a comprehensive compliance programme and revenue collection of the largest public and private corporates.
However, during his stint in the private sector, which included the role of Alexforbes CEO, the LBC was dismantled in 2015 following major restructuring during the reign of former commissioner Tom Moyane.
This partnership enhances the integrity of our tax system, supports business growth and contributes to South Africa’s fiscal stability for the benefit of all stakeholders.
— Edward Kieswetter, Sars commissioner
The restructuring was found by the Nugent commission of inquiry into governance and administration at the tax agency to have been unwise and a key cog in the capture of Sars. Kieswetter has re-established the LBC since he returned to Sars in 2019, with the mandate to rebuild the organisation.
“Simply, the forum creates a space where Sars and leading taxpayers can solve challenges together, share insights and drive innovation. This partnership enhances the integrity of our tax system, supports business growth and contributes to South Africa’s fiscal stability for the benefit of all stakeholders,” said Kieswetter.
The importance of tax receipts was underscored by the recently tabled medium-term budget policy statement, which showed that corporate tax collections performed better than expected, resulting in an upward revision of revenue estimates for the current fiscal year. The official corporate income tax rate remains at 27%.
Kieswetter earlier this year said about R800bn in taxes remained uncollected from individuals and companies.
In March, he told MPs that one of the biggest drivers of uncollected taxes is “aggressive tax planning” — base erosion, transfer pricing and other methods of masking wealth that blur the line between legitimate tax avoidance and outright evasion.
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