SARS has proudly introduced taxpayers to “AI Assistant”, its Artificial Intelligence (AI) conversational platform, to answer real time questions from taxpayers, traders, and travellers, but apparently tax practitioners are not so sure about dealing with SARS AI yet.

The majority of tax practitioners attending a webinar on Ethics in Taxation, presented by Catherine Fourie and Roxshanna du Toit of CPD Consortium this past week, indicated in an online poll that they are not ready to engage with AI when it comes to tax issues, or that they have to think about such an option a lot more.

The webinar took place two days prior to the South African Revenue Service (SARS) making a short announcement on Thursday, 12 December, about its “AI Assistant” which allows taxpayers to interact online with SARS 24/7.

Du Toit said they asked attendees if they would in a hypothetical future world, be willing to engage with a SARS official who was AI rather than human. A total of 33% gave an outright no, while another 42% said it depends and that they will have to give it some thought. 17% of attendees are willing to engage with AI, with the rest unsure.

The question was asked as AI is now a commonly used tool in the business world, but it comes with important ethical considerations including the use of sensitive, confidential or private information in AI learning and responses. 

It seems that the majority of tax practitioners are still weary of dealing with AI compared to humans. 

According to SARS’ announcement the first phase of the new AI Assistant provides responses in real time to questions based on published information, user guides, and other SARS systems which are publicly available on the website.

Putting AI Assistant to the test

AI Assistant, nicely dressed in the blue-ish shades of SARS and accessible on the bottom right side of the SARS webpage, is quite polite when it engages. It starts off by asking: “How can I help you today?” The user can choose between options such as “How do I submit my tax return?”, “How to make payment arrangements?” or “How do I pay my taxes?” or you can type your question in your own words.

The answers are quite snappy.

This is AI Assistant’s answer on the options available to the taxpayer to make payment arrangements:  

Here are the steps to follow:

SARS eFiling:

You can request payment arrangements through SARS eFiling. This platform has been enhanced to allow taxpayers to make deferral payment arrangements without needing to visit a SARS branch or contact the SARS Contact Centre.

For detailed steps on how to make payment arrangements on eFiling, you can refer to the official guide provided by SARS: Enhancements to the eFiling payment arrangement process

SARS MobiApp:

The SARS MobiApp also allows taxpayers, particularly individuals dealing with Personal Income Tax (PIT), to request deferral payment arrangements directly through the app.

Detailed guidance on how to make payment arrangements on the SARS MobiApp can be found here: GEN-DC-20-G04-Deferral-of-Payment-Arrangements-on-SARS-MobiApp-External-Guide.pdf

Contact Centre:

You can also request payment arrangements by contacting the SARS Contact Centre at 0800 00 7277.

Other Methods:

If you are unable to use eFiling or the SARS MobiApp, you can request payment arrangements through an external debt collector.

For more information and step-by-step videos on how to use these services, you can visit the SARS Taxpayer and Trader Education page: Step-by-step videos | South African Revenue Service - SARS

By using these methods, you can manage your outstanding tax debt efficiently and avoid penalties and interest charges.

What about typing your own question

On the question “What do I do when I have been living outside of South Africa and not paid tax for two years?” AI Assistant once again gave a detailed answer including information on determining your tax residency status, referring to tax relief for non-residents etc. It goes on to say: “If you need further personalised advice, it is recommended to consult with a tax professional or contact SARS directly for assistance.”

There is also a button to click should you want to read the Privacy Policy on taxpayer information.

AI Assistant is easily accessible via the SARS MobiApp or on the SARS website’s landing page, but it seems tax practitioners and AI Assistant still need to warm up to each other. 

Conclusion

The SARS 2023/2024 Annual Report emphasises that AI is already being used extensively for fraud detection and verification.  Although the notion of an AI SARS official may be a more distant prospect, this new development shows the commitment of the tax man to use the most advanced available tools, and the importance for tax practitioners and taxpayers to keep informed and prepared, in every step of this unfolding adventure.

Written by Catherine Fourie, Head of CPD Consortium; and Roxshanna du Toit, Independent Trust & Fiduciary Services Expert