SARS tightens enforcement against directors.
SARS is now holding company directors personally liable for unpaid company tax debt — and the stakes have never been higher.
The South African Revenue Service has started taking stronger action against company directors by holding them personally liable for unpaid company tax debt.
Tax specialists have recently seen cases where SARS issued notices directly to directors for millions of rand owed by businesses, enforcing powers contained in the Tax Administration Act (TAA).
SARS believes that directors and individuals managing a company's finances have a responsibility to ensure taxes are paid correctly and on time.
Outstanding tax liabilities were caused by issues such as failing to submit tax returns, submitting late, or making partial or no payments.
SARS may recover debt directly from the director personally — including issuing notices to banks, attaching funds, or even pursuing sequestration of the director's personal estate.
In one recent case, SARS gave the director only 10 business days to respond with full supporting documentation.
Liability is not limited only to financial directors or accountants. Any person involved in financial decision-making may potentially be held accountable.
Section 180 of the Tax Administration Act
What SARS can do to you personally
- Issue notices directly to your personal bank accounts
- Attach funds owed to you personally
- File certified statements with courts against you
- Pursue sequestration of your personal estate
- Consider criminal proceedings in serious cases of non-compliance
Conclusion
Business owners and financial decision-makers can no longer assume that unpaid company taxes will remain separate from their personal liability. These developments highlight the importance of proper tax compliance, accurate record keeping, and timely payment of tax obligations.
Source: Tax & Law — May 2026 · For informational purposes only