Sars is undergoing a significant transformation with the introduction of automated tax assessments driven by AI. This article explores the implications of these changes for taxpayers, including the benefits and potential pitfalls of relying on automated systems.
Sars modernisation is fully underway. Both new Commissioner Ngobani Johnstone Makhubu and prior Commissioner Edward Kieswetter have repeatedly stated that this modernisation will be driven through automation, especially AI.
The rise of auto assessments
The rapid growth of auto assessments has become one of the clearest signs of the Sars’ shift toward a more automated, data-driven model of tax administration. Instead of waiting for every individual taxpayer to complete and submit a return, Sars increasingly uses third-party data to calculate a taxpayer’s position in advance. For many salaried taxpayers with relatively straightforward affairs, the result is a mainly or wholly complete assessment issued at the start of filing season.
The scale of the programme is expanding quickly. In the 2025 filing season, Sars reported that 5.8 million taxpayers received auto assessments, up from 5 million in 2024. Sars also reported that 99.6% of the auto assessments remained unchanged by taxpayers, while R10.6 billion in refunds had already been paid within 72 hours. These figures suggest that auto assessments are no longer a peripheral convenience; they have become a central operating model for large portions of the individual income tax base. Sars is now seeking to prepopulate roughly 6 million taxpayers each year, including taxpayers required to provide simple provisional returns.
