Revenue authority acts against six suspects in bribery and under-declaration scheme
The South African Revenue Service has moved decisively against a corruption network operating within its own ranks, executing search and seizure operations to secure evidence and freeze assets linked to six individuals accused of under-declaring taxable income in excess of R45 million. The alleged scheme is believed to have cost the fiscus approximately R18 million in unpaid income tax.
An investigation by the revenue authority revealed that customs-inspection personnel allegedly conspired with clearing agents and importers to rig physical inspections of goods, accepting cash payments in return for allowing under-declared shipments through. The six suspects include both current and former employees of the revenue service, along with associated taxpayers and traders.
The tax authority stated that those implicated had allegedly shirked their legal obligations as taxpayers by taking part in a corrupt arrangement that directly harmed law-abiding taxpayers, legitimate traders, and the national treasury.
"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."
Commissioner Edward Kieswetter issued those words on Tuesday, underscoring the seriousness with which the institution regards internal malfeasance.
Crackdown aligned with national strategy to combat illicit economy
The enforcement action forms part of the broader National Illicit Economy Disruption Programme unveiled by President Ramaphosa during his State of the Nation Address. The revenue service confirmed that its Illicit Economy Strategy places the fight against corruption and fraud within government departments at the top of its priorities.
Officials emphasised that the institution is working to dismantle organised corruption and fraudulent networks tied to customs and tax processes. These criminal activities, the authority warned, undermine and crowd out legitimate economic activity, threatening economic growth, employment creation, and national prosperity.
"These crimes damage and displace legitimate economic activities. Economic growth, job creation, and prosperity for all South Africans are at stake."
The revenue service noted that its enforcement measures are consistent with its strategic goal of simplifying compliance while making non-compliance increasingly difficult and expensive. To strengthen the national programme, the authority confirmed it would collaborate closely with the South African Police Service and the National Prosecuting Authority to ensure criminal investigations lead to successful prosecutions.
Kieswetter commended the investigative teams behind the operation, stressing that the revenue service exists to serve the people of South Africa. He expressed frustration that the dedication and integrity shown by the vast majority of employees could be tarnished by a handful of individuals willing to conspire with criminal elements.
"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."
