The South African Revenue Service (Sars) has intensified its crackdown on corruption within its ranks and yesterday executed search and seizure operations against customs officials and importers linked to an R18 million tax scam.
The revenue service announced the crackdown on Tuesday, saying it fully supports the National Illicit Economy Disruption Programme, as outlined by President Cyril Ramaphosa in his State of the Nation Address.
Sars said it had been investigating allegations that customs inspection teams colluded with clearing agents and importers to manipulate physical inspections in exchange for cash bribes.
“Financial analysis identified under-declared taxable income exceeding R45m, resulting in income-tax prejudice of about R18 million. To disrupt this scheme, Sars has executed search and seizure and preservation orders against the Sars officials and related parties to secure evidence and assets.”
Sars said the operation involved six of its current and former employees, taxpayers and traders.
“The persons in question are alleged to have 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,” said Sars.
Sars Commissioner, Edward Kieswetter, described the latest enforcement action as part of concerted efforts to protect the fiscus, secure South Africa’s borders, and enforce compliance without fear, favour or prejudice.
“Those who choose to abuse this mandate, whether from within Sars or from outside, have committed a crime and must face the consequences.”
Sars said it trusted officials who served at the frontline of collecting revenue and protecting legitimate trade.
“This responsibility demands conduct beyond reproach and unquestionable integrity. Any deviation from this standard undermines the state and places the organisation into disrepute. This erodes public trust, harms honest taxpayers and traders, and steals from the poor,” the revenue service said.
“Sars 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.”
Sars said it would work with the South African Police Service and the National Prosecuting Authority to yield successful criminal investigations and prosecutions to give full effect to the National Illicit Economy Disruption Programme.
Kieswetter praised teams involved in the investigation.
“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.
“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.”
Kieswetter said where evidence pointed to criminality, the service would disrupt the scheme and recover what was owed to the fiscus.
He said Sars would hold all criminally involved individuals accountable, regardless of the complexity of a case or the time required to deliver justice.
Sars urged the public and business to report suspected bribery, fraud, or customs irregularities through established channels.
