The South African Revenue Service (SARS) has executed search and seizure and preservation orders to secure evidence and assets against six people alleged to have under-declared taxable income exceeding R45 million, resulting in income-tax prejudice of about R18 million.
SARS has been investigating allegations that customs-inspection teams colluded with clearing agents and importers to manipulate physical inspections in exchange for cash bribes.
The latest actions taken by SARS relate to six current and former SARS employees and related taxpayers and traders.
According to SARS, the persons in question allegedly failed to comply with their statutory obligations as taxpayers by participating in a corrupt scheme that has directly prejudiced all honest taxpayers and traders and the fiscus.
“We cannot tolerate any acts of corruption. This is a red line that no one must cross, and no position inside or outside SARS places anyone above the law.
“Where evidence points to criminality, SARS will detect and pursue it, disrupt the scheme, and recover what is owed to the fiscus,” SARS Commissioner Edward Kieswetter said on Tuesday in a statement.
The law enforcement operation demonstrates that SARS is fully behind the National Illicit Economy Disruption Programme announced by President Ramaphosa in his State of the Nation Address (SONA).
“SARS is committed to eradicating all forms of corruption, collusion, and criminal subversion of customs and tax processes, internally and externally. SARS’s Illicit Economy Strategy prioritises corruption and fraud in government departments.”
The revenue service said it is disrupting and dismantling the illicit economy, organised corruption, and fraud linked to customs and tax processes.
“These crimes damage and displace legitimate economic activities. Economic growth, job creation, and prosperity for all South Africans are at stake.
“SARS’s enforcement actions align with the organisation’s strategic objective to make compliance easier and noncompliance hard and costly.
“To give full effect to the National Illicit Economy Disruption Programme, SARS will work with South African Police Service and the National Prosecuting Authority to yield successful criminal investigations and prosecutions.”
Kieswetter praised teams involved in the investigation and reiterated that SARS exists to serve South Africans.
“Far too many of our employees work diligently, with utmost dedication and integrity, in pursuit of that higher purpose, for their efforts to be undermined by a few who choose to collude with criminals,” he said.
The Commissioner stressed that corrupt officials betray public trust and undermine the state. -SAnews.gov.za
