What your bank could soon do before paying your SARS tax refund

South African banks could soon be given clearer powers to screen tax refunds

South African banks could soon be given clearer powers to screen tax refunds before or after they are paid into customers’ accounts, under proposed changes to the country’s tax administration laws.

The proposal is aimed at helping banks identify and report suspicious tax refunds while allowing legitimate payments to move through the banking system more smoothly.

It is among several changes contained in the 2026 Draft Tax Administration Laws Amendment Bill, published by National Treasury and the South African Revenue Service (SARS) for public comment.

The draft bills were published on July 30, with interested parties invited to submit written comments to National Treasury and SARS by close of business on August 28.