The South African Revenue Service (Sars) on Tuesday executed search and seizure, and preservation orders against six of its current and former employees, related to traders and taxpayers, to secure evidence and assets.
Sars has been investigating allegations that customs-inspection teams colluded with clearing agents and importers to manipulate physical inspections in exchange for cash bribes.
Investigations identified under-declared taxable income exceeding R45-million, resulting in income-tax prejudice of about R18-million.
Sars Commissioner Edward Kieswetter said individuals were alleged to have failed to comply with their statutory obligations as taxpayers by participating in a corrupt scheme that had directly prejudiced all law-abiding taxpayers, traders and the fiscus.
“Those who choose to abuse this mandate, whether from within Sars or from outside, have committed a crime and must face the consequences… Economic growth, job creation, and prosperity for all South Africans are at stake,” he said.
Kieswetter explained that Sars’ enforcement actions align with the organisation’s strategic objective to make compliance easier and noncompliance hard and costly.
He said to give full effect to the National Illicit Economy Disruption Programme, Sars will work with the South African Police Service and the National Prosecuting Authority on criminal investigations and prosecutions.
“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 will hold all criminally involved individuals accountable, no matter the complexity or time required to do so. Integrity is not optional at Sars; it is foundational to our mandate,” he said.
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