Taxpayers may be aware of SARS’ Voluntary Disclosure Programme (“VDP”), which provides taxpayers who are in default on their tax affairs an opportunity to voluntarily approach SARS to disclose their tax non-compliance and thereby regularise their tax affairs. This programme allows taxpayers to avoid understatement penalties, qualifying administrative penalties, and criminal prosecution for their non-compliance. In order to successfully make use of this programme, section 227 of the Tax Administration Act 28 of 2011 (“TAA”) provides that for a taxpayer applying for voluntary disclosure relief, the disclosure must (i) be voluntary, (ii) not have occurred within five years of the disclosure of a similar default, (iii) be a full and complete disclosure in all material respects, (iv) involve a behaviour set out in the understatement penalty table in Section 223 of the TAA, (v) not result in a refund due by SARS, and (vi) be made within the prescribed manner and form set out by SARS.

A common misconception exists that the VDP applies to Customs and Excise matters, however, it currently does not. Section 1 of the TAA defines “Tax Act” as the TAA itself or an Act, or portion of an Act, referred to in section 4 of the SARS Act, but explicitly excludes Customs and Excise legislation, which is defined specifically as the Customs and Excise Act, 1964, the Customs Duty Act, 2014, or the Customs Control Act, 2014. This means that, unless specifically stated otherwise, the administrative provisions of the TAA do not generally apply to Customs and Excise matters. There are, however, exceptions where the TAA is expressly incorporated into Customs and Excise legislation, or vice versa.

Notably, in the 2025 National Budget, provision is made in Annexure C (Additional Tax Policy and Administrative Adjustments) thereof as follows: “The Tax Administration Act (2011) provides for a voluntary disclosure programme but excludes customs and excise. It is proposed that the Customs and Excise Act be amended to provide for a customs and excise voluntary disclosure programme.”

Consequently, the authorities are considering the possibility of including Customs and Excise-related matters into the VDP. This is not yet a confirmed decision, and the format or procedure of such a programme would still need to be determined.

Pending the introduction of a VDP for Customs and Excise matters, taxpayers involved in Customs and Excise-related activities should be vigilant when it comes to Customs and Excise compliance to ensure that risks are effectively managed and addressed within the current legislative framework as limited information is available on the timing on the introduction of such a specific voluntary disclosure program.