New laws give SARS more power over money in your bank accounts in South Africa

• The new laws give SARS the power to temporarily freeze funds and payments to taxpayers in South Africa, requiring banks to help identify potentially suspicious refund activity.
• The proposed changes are part of the 2026 Draft Tax Administration Laws Amendment Bill and aim to combat tax fraud by extending SARS' fraud-detection powers beyond the tax authority itself.
• The implementation of these new laws is expected to add an additional layer of security for fiscal funds, but the lack of guidance on the risk matrix used by banks to determine suspicious activity remains a concern.