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Sars mum on Juju pals tax inquiry

Sars declined on Monday to comment on reports that several businessmen linked to suspended ANC Youth League leader Julius Malema were to appear before a secret judicial inquiry for suspected tax evasion.

“The SA Revenue Service (Sars) has consistently held the position that it does not and cannot comment publicly on the affairs of any taxpayer regardless of whether it is a business, a trust or individual taxpayer,” spokesman Adrian Lackay said.

(File photo) Expelled ANCYL President Julius Malema. Photo: Dumisani Sibeko. Credit: INDEPENDENT NEWSPAPERS

“Taxpayer confidentiality is an obligation imposed on Sars by the Income Tax Act, amongst other pieces of legislation.”

According to reports on Sunday, several of Malema's allies had been subpoenaed to appear before the inquiry. It was reportedly convened after some business people and government officials refused to co-operate with the taxman. Malema had not been subpoenaed.

Lawyer Piet PJJ Marais, SC, would reportedly head the inquiry, a judicial body set up in terms of the Income Tax Act. The order to hold the inquiry was granted last month by president of the High Court in Pretoria, Judge Willem van der Merwe.

Limpopo businessmen linked to 19 companies, who were close to Malema, were summoned. These companies included SGL Engineering Projects, where Malema was a director, Gwama Properties, and On-Point Engineers, which was co-owned by Malema's Ratanang family trust.

Lackay said taxpayer confidentiality applied whether or not a taxpayer was under investigation.

“Taxpayer confidentiality ends only when a matter is formally brought before a court of law, other than a tax court. It then becomes a matter for public record.” – Sapa

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