would you like to leave us a GOOGLE review OF YOUR EXPERIENCE WITH US? SIMPLY click here 🤓
How One Taxpayer Saved Nearly R1.4 Million Through a SARS Crypto Voluntary Disclosure Programme (VDP)
Discover how one South African taxpayer reduced tax, penalties and interest by nearly R1.4 million through a professionally prepared SARS Crypto Voluntary Disclosure Programme (VDP) application.
J. L. Muller B.Com (Accounting) (Hons) (Tax)
7/30/20264 min read
Can a SARS Crypto Voluntary Disclosure Programme (VDP) really save you money?
In this real-life case study, discover how one taxpayer reduced tax, penalties and interest by nearly R1.4 million through a carefully prepared cryptocurrency VDP application.
Crypto Tax Insights
For many South African cryptocurrency investors, discovering that past cryptocurrency transactions were never declared to SARS can be overwhelming.
A common question is whether it is still possible to regularise your tax affairs—and whether doing so can meaningfully reduce the financial consequences.
In this Tax Insight, we examine a real, anonymised case completed by Crypto Tax Consult that demonstrates how a professionally prepared SARS Voluntary Disclosure Programme (VDP) application can make a significant difference, depending on the specific facts and circumstances of the taxpayer.
How One Taxpayer Saved Nearly R1.4 Million Through a SARS Crypto Voluntary Disclosure Programme (VDP)
30 July 2026
Is This Article Relevant to You?
This article may be relevant if you have ever:
✔ Bought or sold Bitcoin, Ethereum or other cryptocurrencies.
✔ Traded on Binance, Luno, VALR, Kraken, Bybit, Coinbase or other cryptocurrency exchanges.
✔ Earned staking rewards or other cryptocurrency income.
✔ Used overseas cryptocurrency exchanges.
✔ Never declared your cryptocurrency transactions to SARS.
✔ Received correspondence from SARS regarding cryptocurrency.
✔ Wondered whether it is too late to regularise your tax affairs.
If any of the above applies to you, this article may help you better understand the potential benefits of obtaining professional advice before SARS initiates further action.
Can a SARS Cryptocurrency VDP Really Save You Money?
One of the most common questions we receive is:
“Is it worthwhile applying for a Voluntary Disclosure Programme (VDP) if I have not declared my cryptocurrency?”
In many cases, the answer is YES.
While every taxpayer’s circumstances are different, a professionally prepared VDP application can, where appropriate, provide meaningful relief under the provisions of the Tax Administration Act.
The example below is based on an actual matter recently completed by Crypto Tax Consult and illustrates how careful preparation contributed to the final outcome.
A Real Cryptocurrency VDP Case
The taxpayer approached Crypto Tax Consult after realising that cryptocurrency transactions spanning several years had not been declared to SARS.
The matter involved:
Total cryptocurrency proceeds of R4 524 543.90
Six years of outstanding tax affairs
Multiple cryptocurrency exchanges
A large volume of cryptocurrency transactions
Complex historical calculations requiring specialist cryptocurrency tax software and technical tax analysis
Although technically challenging, the matter was finalised in less than two months from the date of engagement.
The Outcome
Following the preparation and submission of the Voluntary Disclosure Programme application, together with engagement with SARS where appropriate, the taxpayer benefited from concessions available under the law.
These included:
✔ Appropriate Capital Gains Tax treatment instead of ordinary income tax where the facts supported that treatment.
✔ Relief from certain understatement penalties.
✔ Savings relating to provisional tax penalties.
✔ A reduction in the overall interest burden.
How Was Such a Large Saving Possible?
Many people assume that a Voluntary Disclosure Programme simply involves informing SARS about previously undeclared income.
In reality, a successful cryptocurrency VDP often requires extensive technical work.
In this matter, the outcome was supported by:
Correctly determining whether transactions were capital or revenue in nature
Reconstructing years of cryptocurrency transactions
Establishing accurate acquisition costs
Preparing legally compliant Capital Gains Tax calculations
Applying the provisions of the Tax Administration Act correctly
Presenting SARS with a complete and technically supported disclosure
The quality of the preparation can have a significant impact on the final outcome.
Case Study Outcome
Total reduction in tax, penalties and interest
R1 399 763.14
Important: This outcome relates to the specific facts and circumstances of this taxpayer’s case.
Every VDP application is assessed individually, and previous outcomes do not guarantee similar results in future matters.
Why Timing Matters
One of the biggest mistakes taxpayers make is waiting too long before seeking advice.
Once SARS has commenced an audit or investigation into the relevant default, the opportunity to qualify for relief under the Voluntary Disclosure Programme may no longer be available.
As SARS continues to receive increasing amounts of cryptocurrency information from both local and international sources, delaying action can significantly increase financial exposure.
Seeking professional advice before SARS initiates contact is often the better course of action.
Cryptocurrency Tax Is Different
Unlike many traditional investments, cryptocurrency taxation often involves thousands of transactions spread across multiple exchanges and wallets.
Each transaction type may have different tax consequences and should be analysed according to its own facts.
Why Specialist Advice Makes a Difference
Not every accountant or tax practitioner specialises in cryptocurrency taxation.
Preparing a complex cryptocurrency VDP application may require:
Specialist cryptocurrency tax software
Blockchain transaction analysis
Exchange reconciliation
Capital Gains Tax calculations
Knowledge of SARS practice
Experience with Voluntary Disclosure Programme applications
For many taxpayers, specialist knowledge can make a meaningful difference to both the efficiency of the process and the final outcome.
Frequently Asked Questions
Can SARS trace cryptocurrency?
SARS has significantly increased its ability to obtain cryptocurrency information through international information-sharing arrangements, exchange requests and information obtained from cryptocurrency service providers.
Can I still apply if I have never declared crypto?
In many circumstances, yes.
Whether a VDP application is appropriate depends on your individual facts and whether the statutory requirements are met.
Is cryptocurrency always taxed as income?
No.
Depending on the facts, cryptocurrency may be taxed either as ordinary income or as a capital gain.
Determining the correct treatment requires careful analysis.
Is it too late?
Every situation is different.
However, waiting until SARS contacts you may reduce the relief available under the Voluntary Disclosure Programme.
Obtaining professional advice early is generally preferable.
Key Takeaways
Every SARS Crypto VDP application is assessed on its own facts and circumstances.
Early action is generally preferable to waiting for SARS to initiate contact.
Correct classification of cryptocurrency transactions can materially affect the tax outcome.
Thorough preparation and accurate records play an important role in a successful VDP application.
Professional guidance can help ensure that SARS receives a clear, complete and technically supported disclosure.
For almost 50 years, Crypto Tax Consult has assisted taxpayers with complex South African tax matters.
The practice combines decades of tax experience with specialist expertise in cryptocurrency taxation and SARS Voluntary Disclosure Programme applications.
Crypto Tax Consult understands both the legislation and the practical challenges involved in reconstructing cryptocurrency histories and preparing technically robust disclosures.
Speak to a Cryptocurrency Tax Specialist
If you believe your cryptocurrency tax affairs may not be fully compliant, obtaining professional advice sooner rather than later could make a significant financial difference.
Every taxpayer’s circumstances are unique, and the appropriate course of action depends on the specific facts of your situation.
If you’re unsure where you stand, Crypto Tax Consult can help you understand your position and guide you through the available options—including, where appropriate, the SARS Voluntary Disclosure Programme.
Contact Crypto Tax Consult today to arrange a confidential consultation before SARS contacts you.
Experienced Tax Advisory Firm By Muller Tax Consultants
Let us contact you
© 2026. All rights reserved.
Crypto Tax Consult
By Kobus Muller EST. 1977
View Our: Terms and Conditions / Privacy Policy
Contact Us Directly:
Website developed and maintained by Uncapped Creative
Kobus Muller is a proud member of the South African Institute of Taxation with Membership number 10863605.
Crypto Tax Consult proudly partners with Koinly Crypto Tax Software
We are proud to partner and be associated with the following organizations
Kobus Muller is a proud member of the South African Institute of Professional Accountants (SAIPA) with Membership number 00545.
Kobus Muller is proudly associated with the Professional Partner Network as a Crypto Tax Compliance Partner.
Kobus Muller is proudly associated with Summ, as a fully registered crypto accountant.