Tax Avoidance vs Tax Evasion: Toeing the Line

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Huysamen Westraad Incorporated

June 2025

Tax Avoidance vs Tax Evasion: Toeing the Line

There’s a thin line between tax avoidance, which is legal, and tax evasion, which is a tax crime. Every taxpayer, corporate or individual, has the right and duty to ensure they don’t pay any more tax than what is legally required – but tax evasion can result in hefty penalties and even jail time.

In this article we establish where the line is, and why it is best navigated with the help of your accountant.

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NOTE FOR ACCOUNTANTS: The Effect of Tax Avoidance and Tax Evasion on the Performance of South African Economy document provides insights into the magnitude of the extent of tax evasion and avoidance on the country’s economic growth progress.

5 Tips for Helping Your Employees Through a Crisis

Youth Day: How Businesses Can Benefit from the ETI

How to Untangle Your Personal and Business Finances

As a business owner, at some stage you will inevitably be asked to help an employee through a crisis in either their personal or professional life. How you respond to their bereavement, financial difficulties or workplace meltdown, will directly affect your other employees and your company culture.

Supporting your staff can increase loyalty, improve morale, and strengthen team cohesion. But it’s not just about empathy – these situations can have long-term implications for productivity, reputation, and even your bottom line.

Youth Day on 16 June is a great time to consider the advantages of employing young people in your business – and to find out how SARS’ Employment Tax Incentive (ETI) can assist your company to do this at a reduced cost.

Key to unlocking the benefits of this tax incentive – and of having young employees – is the professional assistance we bring to ensure ongoing compliance with the numerous and ever-changing rules and administrative issues that come with this incentive.

In the life cycle of every small business or start-up, one early trap catches many founders off guard: failing to separate personal and business finances.

Whether you’re a seasoned entrepreneur or just starting out, maintaining clear financial boundaries is essential for protecting yourself and your business and ensuring long-term success. Here are five tips to help you draw the line.

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NOTE FOR ACCOUNTANTS: The Gallup Poll makes for interesting reading, you can access it here.

NOTE FOR ACCOUNTANTS: You can help clients to ascertain whether they are a ‘qualifying employer’ using SARS’ interactive tool. Also, visit the Employment Tax Incentive (ETI) webpage for more information and resources.

NOTE FOR ACCOUNTANTS: This Bizcommunity article explores why it’s important to untangle your finances.

Budget 3.0: VAT Increase Out, Fuel Levy Hikes In

Last month’s Budget 3.0 withdrew the contentious proposed VAT changes. This resulted in inflation-linked fuel levy increases of 16c for petrol and 15c for diesel, from 4 June.

Other tax proposals from March’s Budget – including static personal tax thresholds, reduced transfer duties, and sin tax increases – remain unchanged.

The tax measures contained in Budget 3.0 will raise an additional R18bn in 2025/26. A further R20bn in tax measures are postponed to Budget 2026 – unless SARS collects an extra R35bn in uncollected taxes, for which Budget 3.0 allocated an additional R4bn in funding.

NOTE FOR ACCOUNTANTS: No notes for this article.

Your Tax Deadlines for June 2025

06 June – PAYE submissions and payments
25 June – VAT manual submissions and payments
27 June – Excise duty payments
30 June – VAT electronic submissions and payments, & CIT Provisional Tax payments where applicable.

NOTE FOR ACCOUNTANTS: See “Important Dates” on the SARS website (click the right arrow next to “Today” to view the appropriate month).

Physical Address:

Manor House, Farm 3
Vineyards Office Estate
99 Jip de Jager Drive
Bellville, 7530

Postal Address:

P.O. Box 1950 Bellville

Contact Details:

Tel: 021 945 1009
Fax: 021 946 4086
Email: admin@dhw.co.za

Disclaimer

The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for professional, detailed and appropriate advice.

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