eFiling confusion, lack of explanation spark outcry as crypto trader challenges SARS over unexpected assessment
A South African taxpayer has found himself at the centre of a fierce dispute with the South African Revenue Service (SARS) after being hit with an unexpected tax assessment of more than R1.7 million, stemming from a modest cryptocurrency transaction in 2021.
John Godsiff, the taxpayer in question, said he initially deposited R185,000 into a cryptocurrency trading platform and later withdrew approximately R70,000. Despite the limited trading activity, SARS issued an additional assessment for R1.5 million, which ballooned to over R1.7 million once penalties were included.
The assessment, dated 10 March, was followed just days later by SARS debiting R16,000 from Godsiff’s bank account on 17 March. According to Godsiff, he was unaware of the additional assessment until 13 March, when he discovered it through an email sent from an unfamiliar address. Upon checking his SARS eFiling profile, he found no corresponding official documentation at the time.
“The additional assessment was only placed on my profile at a later stage and could be verified as authentic,” Godsiff stated.
He immediately penned a detailed letter to SARS on 13 March contesting the assessment, but said he received no feedback. “SARS presented a ‘bald and threatening claim’ of the sum of R1,738,398 without supplying ‘any helpful background’ about where the amount had been sourced, nor any detail as to how the amount had been calculated,” he said.
Frustrated by the lack of communication, Godsiff reached out to Moneyweb on 18 March. He reported that attempts to reach SARS via its helpline and through the eFiling system proved unsuccessful.
Godsiff’s situation highlights growing tensions between cryptocurrency traders and tax authorities as digital assets fall under greater regulatory scrutiny.
When approached for comment, SARS spokesperson Siphithi Sibeko declined to provide any information. “SARS is prohibited by Chapter 6 of the Tax Administration Act from divulging any taxpayer information. In this respect, SARS will not be commenting,” he said.
The case has raised broader questions about transparency and communication in SARS’s handling of digital asset taxation, particularly as more South Africans explore cryptocurrency as a financial tool.
