Share

Rogue spy unit report rocks Sars

Johannesburg - An independent investigation into a rogue spy unit has rocked the South African Revenue Services as tax settlements worth billions could be reversed.

According to the Sunday Times, high profile South Africans including Dave King, Cobus Wiese and Julius Malema could be faced with much higher tax bills if their deals are reviewed.

The investigation carried out by a panel headed by advocate Muzi Sikhakhane has confirmed reports – that were continuously denied by Sars – that the rogue unit engaged in a wide spectrum of illegal activities.

It found that Sars operated a covert unit that illegally spied on taxpayers, including some it had cut deals with. As a result, all deals over the past ten years could be up for review.

Deals include businessman King’s R700m settlement reached after he owed Sars R2.7bn, while Wiese settled for an undisclosed amount after being slapped with a R2bn bill last year.

The report has recommended that Sars conduct a forensic investigation into all settlements concluded since 2005.

The Sars scandal dominated headlines last week after the Johannesburg Labour Court ordered the revenue service to lift Deputy SA Revenue Service commissioner Ivan Pillay's suspension.

Sars declined to comment on the Sikhakhane report.

As reported by Sapa on Thursday, Judge Annelie Basson stated that Pillay’s suspension had been unlawful on the basis that it was in breach of his employment contract.

She ordered that Pillay return to work on Friday. Sars was also ordered to pay costs.

On December 5, Sars commissioner Tom Moyane announced the suspension of Pillay and strategic planning and risk group executive Peter Richer.

This followed the appointment by Pillay of a panel to investigate allegations reported in the media about a special projects unit and its alleged illegal activities at Sars.

Sars chief operations officer Barry Hore had also resigned.

On Wednesday, Pillay and Richer approached the Labour Court to have their suspensions overturned.

Richer reached a settlement with Sars and his suspension was withdrawn on Wednesday.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Voting Booth
Do you think corruption-accused National Assembly Speaker Nosiviwe Mapisa-Nqakula will survive a motion of no confidence against her?
Please select an option Oops! Something went wrong, please try again later.
Results
No, her days are numbered
42% - 355 votes
Yes, the ANC caucus will protect her
58% - 492 votes
Vote
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.45
+0.1%
Rand - Aus dollar
12.35
+0.0%
Rand - Yen
0.13
-0.2%
Platinum
904.58
+0.9%
Palladium
1,012.82
+1.1%
Gold
2,218.03
+1.1%
Silver
24.80
+0.7%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.9%
Resource 10
57,251
+2.9%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE