SARS Fraud Reporting Guide South Africa
Tax fraud costs South Africa billions of rands annually, reducing the government's ability to fund schools, hospitals, and public services. SARS encourages the public — including employees, business partners, and competitors — to report suspected tax fraud or non-compliance. Reports are treated as confidential and can be made anonymously.
This guide explains what qualifies as tax fraud, how to report it, what to include in your report, and what happens after you file.
Tax Fraud vs Honest Mistakes: The Critical Difference
Not every incorrect tax return is fraud. SARS distinguishes between:
Honest errors: Incorrect calculations, missing a declaration due to misunderstanding, or claiming a deduction that turns out to be disallowed. SARS handles these through the standard audit, assessment, and objection process. Penalties may apply but are typically administrative (10-200% of underpaid tax).
Negligence: A taxpayer who should have known better but failed to take reasonable care. SARS may impose substantial penalties but will not necessarily pursue criminal prosecution.
Tax fraud (tax evasion): A deliberate, intentional act to deceive SARS for financial gain. Examples include:
- Knowingly understating income or sales
- Using false documents (fake invoices, forged receipts) to claim deductions
- Not registering for VAT despite exceeding the threshold, specifically to avoid paying VAT
- Operating as a "ghost" employer (deducting PAYE from employees but not paying it to SARS)
- Running a second set of books to conceal true business turnover
- Claiming personal expenses as business expenses with knowledge that they are not deductible
Tax fraud is a criminal offence under the Tax Administration Act 28 of 2011 and the Income Tax Act. Convictions can result in imprisonment of up to 5 years, fines, or both.
How to Report Tax Fraud to SARS
SARS provides four reporting channels:
1. SARS Online Fraud Reporting Form (Recommended)
The most comprehensive method. Available at www.sars.gov.za → Contact Us → Report Fraud/Corruption.
The online form allows you to:
- Describe the fraud in detail
- Upload supporting documents (bank statements, invoices, screenshots)
- Provide information about the taxpayer or company involved
- Choose whether to identify yourself or report anonymously
2. SARS Anti-Corruption and Fraud Hotline
Call 0800 00 2870 (toll-free, 24 hours, 7 days a week).
This is a dedicated channel for fraud and corruption reports. You can remain anonymous. The operator will guide you through the information SARS needs.
3. SARS General Contact Centre
Call 0800 00 7277 and ask to be transferred to the fraud unit.
4. Written Report to the SARS Fraud Unit
You can write directly to:
SARS Fraud Department
Private Bag X923
Pretoria 0001
Or email: fraud@sars.gov.za (include all supporting details in the email body or as attachments).
What Information to Include in Your Report
The more specific your report, the more actionable it is. SARS can investigate without identifying information, but specific details speed up the process:
About the suspected fraudster:
- Full name and surname (or trading name / company name)
- SA ID number or company registration number (if known)
- Tax reference number (if known)
- Physical address or area of operation
- Contact number or email address
About the fraud itself:
- Nature of the fraud: Is it income understatement, VAT fraud, PAYE non-payment, false invoicing?
- Approximate amounts involved
- How long has it been happening?
- How do you know — are you an employee, a supplier, a customer, or do you have documentary evidence?
Your supporting evidence:
- Bank statements showing unexplained cash income
- Copies of invoices marked "paid in cash" not declared
- Copies of two sets of books
- Screenshots of communications or instructions to falsify records
- Any other documentation
Your contact details (if you are willing to be contacted for follow-up — not required for anonymous reports).
SARS's Investigation Process
After receiving a fraud report:
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Triage and assessment: SARS analysts assess the report for credibility and materiality. Anonymous reports with no supporting detail may be set aside if they cannot be verified.
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Audit selection: If the report is credible, SARS may flag the taxpayer for a desk audit or field audit. This is separate from the normal audit selection process.
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Evidence gathering: SARS investigators have broad powers under the Tax Administration Act — including the power to request information from banks (Third Party Data requests), inspect business premises, and subpoena records.
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Assessment: If fraud is confirmed, SARS issues a revised assessment plus penalties and interest.
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Criminal referral: For serious fraud cases, SARS refers the matter to the South African Police Service (SAPS) for criminal prosecution, or proceeds directly through the courts under the Tax Administration Act.
Confidentiality: SARS treats fraud reports as confidential. You will not routinely receive updates on the outcome, but this does not mean nothing happened.
Protecting Yourself as a Fraud Whistleblower
South Africa's Protected Disclosures Act 26 of 2000 provides legal protection to employees who report workplace fraud (including tax fraud by their employer) in good faith. If your employer dismisses or victimises you for making a protected disclosure:
- Report to the CCMA (Commission for Conciliation, Mediation and Arbitration)
- You may have a claim for automatic unfair dismissal
- Get legal advice from a labour attorney or the CCMA advisory service
If you are not an employee (e.g., a business partner or competitor making a report), the Protected Disclosures Act protection is more limited. However, SARS's confidentiality obligations mean the subject of the investigation should not know you made the report.
What If You Are the Subject of a Fraud Allegation?
If SARS contacts you because someone has reported you:
- Do not ignore correspondence: Respond within the stated timeframe. SARS will proceed to an assessment if you don't respond.
- Request details of the allegation: SARS is required to give you an opportunity to respond under the audit process.
- Gather your records: Tax records must be kept for 5 years from the date of submission in South Africa.
- Engage a registered tax practitioner: For any serious allegation, professional representation during an audit is strongly recommended.
- Voluntary disclosure: If you have underpaid tax, consider SARS's Voluntary Disclosure Programme (VDP). Taxpayers who come forward proactively receive significant penalty reductions and immunity from criminal prosecution in qualifying circumstances.
Related Guidance
Official References
- SARS Fraud Hotline: 0800 00 2870
- South African Revenue Service - www.sars.gov.za
- Tax Administration Act 28 of 2011 - www.gov.za
- Protected Disclosures Act 26 of 2000 - www.gov.za
Last Reviewed
Last reviewed: 2026-03-03. This article is informational only - verify reporting channels with SARS directly if contact details have changed.
ElyForma articles are written for informational use and practical guidance. They do not replace advice from a qualified legal professional for your specific case.
