Johannesburg: The South African Revenue Service (SARS) has executed search and seizure and preservation orders to secure evidence and assets against six individuals alleged to have under-declared taxable income exceeding R45 million, resulting in an income-tax prejudice of approximately R18 million. The latest actions by SARS are focused on six current and former SARS employees and related taxpayers and traders.
According to South African Government News Agency, the individuals 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, traders, and the fiscus. SARS has been investigating allegations that customs-inspection teams colluded with clearing agents and importers to manipulate physical inspections in exchange for cash bribes.
SARS Commissioner Edward Kieswetter emphasized the agency's zero-tolerance approach to corruption, stating, "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." He further stated, "Where evidence points to criminality, SARS will detect and pursue it, disrupt the scheme, and recover what is owed to the fiscus."
The law enforcement operation is part of SARS's support for 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, both internally and externally, as part of its Illicit Economy Strategy.
The revenue service is actively working to dismantle the illicit economy, organized corruption, and fraud linked to customs and tax processes. These crimes are said to damage and displace legitimate economic activities, with economic growth, job creation, and prosperity for all South Africans at stake.
SARS's enforcement actions align with the organization's strategic objective to make compliance easier and noncompliance hard and costly. To fully implement the National Illicit Economy Disruption Programme, SARS will collaborate with the South African Police Service and the National Prosecuting Authority to ensure successful criminal investigations and prosecutions.
Commending the investigation teams, Kieswetter 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 stated. The Commissioner stressed that corrupt officials betray public trust and undermine the state.