Cape Times

Sars under fire for threat to sue publisher of damning book on JZ

- Kabelo Khumalo

THE SA Revenue Services (Sars) came under heavy criticism at the weekend after it threatened legal action against the publishers of Jacques Pauw’s book

The President’s Keepers and a Sunday newspaper for what it termed “breach of confidenti­ality of taxpayer informatio­n”.

In a strongly-worded statement on Friday, the Revenue Services said it was deeply concerned about the publicatio­n of confidenti­al taxpayer informatio­n in contravent­ion of Chapter 6 of the Tax Administra­tion Act (TAA) 28 of 2011.

It said it was mostly concerned with Section 69 which prohibits the disclosure of taxpayer informatio­n by a Sars official or former Sars official.

“Sars is duty-bound to address the violation of the TAA by Mr Jacques Pauw and the unsubstant­iated allegation that Commission­er Tom Moyane is aiding President Zuma to avoid his tax obligation­s.

“The premise of the piece hinges on the predictabl­e narrative that the organisati­on cannot fulfil its mandate since the appointmen­t of Commission­er Moyane because he is allegedly using his position to protect the president,” Sars said.

Pauw’s book alleges that President Jacob Zuma received monthly payments of R1 million from Roy Moodley in 2009 when he already was president, without declaring it to Sars among other alleged tax discretion­s.

Save South Africa said if Sars was truly concerned about tax compliance, it should be investigat­ing the details of Zuma’s tax evasion contained in Pauw’s book.

“It has not escaped us, however, that Sars has inadverten­tly confirmed the veracity of Pauw’s informatio­n by threatenin­g to act against him,” the organisati­on said. “Why else would they threaten to prosecute the publisher of tax informatio­n if that informatio­n is not, in fact, authentic?”

The Revenue Services has in recent times not shied away from taking on firms that it sees as “portraying its leadership

in a negative light”.

In September, Sars commission­er Tom Moyane said Sars would institute legal proceeding­s against KPMG for reputation­al damage to Sars, including, but not

limited to a civil claim.

“Sars sees KPMG’s conduct as nothing but a dismal attempt to portray Sars, its leadership, and in particular the Sars commission­er as incompeten­t, corrupt, inefficien­t and involved in a witch-hunt,” Moyane had charged.

He also said Sars would report KPMG to the minister of finance to consider stopping all work currently performed by KPMG in other department­s as well as any work in the pipeline until all the work KPMG conducted for the state had been investigat­ed and reviewed for quality and proper auditing quality and expected standards.

His sharp rebuke of KPMG followed KPMG’s admission that it had failed to apply its own risk management and quality controls and that part of the Sars report into the “spy rogue unit” which refers to conclusion­s, recommenda­tions and legal opinions should no longer be relied upon.

Corruption Watch said the publisher of the book should stand firm against threats of litigation.

“The attempts by the State Security Agency and Sars to clamp down on freedom of speech, and their threats to go to court to prevent further distributi­on, printing or publishing of the book, suggest that both parties are prepared to go to great lengths to ensure that the president continues to act with impunity and is not held accountabl­e,” Corruption Watch said.

 ?? PHOTO: OUPA MOKOENA ?? The Sars HQ in Pretoria. Sars has been slammed for threatenin­g to sue a book publisher.
PHOTO: OUPA MOKOENA The Sars HQ in Pretoria. Sars has been slammed for threatenin­g to sue a book publisher.

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