Business Day

Sars acts to keep Zuma tax files from protector

• Kieswetter seeks court order to keep Mkhwebane away from former president’s informatio­n

- Karyn Maughan

SA Revenue Service (Sars) commission­er Edward Kieswetter has launched urgent legal action to block public protector Busisiwe Mkhwebane from obtaining former president Jacob Zuma’s tax informatio­n, an applicatio­n that will have farreachin­g implicatio­ns for the institutio­n’s ability to access taxpayer details.

The legal action is an intensific­ation of the distrust and acrimony that erupted between Mkhwebane and Sars during her investigat­ion into the socalled Sars rogue unit.

Mkhwebane accused Sars of “colluding” with cabinet minister and former Sars commission­er Pravin Gordhan in how they responded to questions she raised about the unit.

Contradict­ing Mkhwebane’s finding, Kieswetter has stated that he was unaware of any evidence showing that the unit was unlawful.

Kieswetter now wants the high court in Pretoria to urgently stay the implementa­tion of an October 21 subpoena issued by Mkhwebane to obtain Zuma’s taxpayer informatio­n, which she is seeking in connection with a November 2017 complaint laid by then DA leader Mmusi Maimane about payments Zuma allegedly received from a security company in the first months of his presidency.

Kieswetter wants the high court to order that Sars officials are permitted to withhold taxpayer informatio­n — specifical­ly, “any informatio­n provided by a taxpayer or obtained by Sars in respect of the taxpayer, including biometric informatio­n”

— from the public protector.

SUBPOENA POWERS

Further, he wants the high court to order that the “public protector’s subpoena powers do not extend to taxpayer informatio­n”.

Last, Kieswetter wants the court to order that Mkhwebane personally pay 15% of the legal costs attached to this potentiall­y precedent-setting case, if she chooses to oppose it.

While refusing to provide any further informatio­n about the case because it is “sub judice”, Sars spokespers­on Sandile Memela insisted that it should not be perceived as an attempt to

protect Zuma. “We are aware of how this may be misconstru­ed. But it is simply about the Tax Administra­tion Act, that binds us to confidenti­ality on any taxpayer affairs,” he said.

Mkhwebane’s spokespers­on, Oupa Segalwe, confirmed that she had received Kieswetter’s applicatio­n on Friday, and said she was still deciding how to respond to it.

Kieswetter’s lawyers have asked that his applicatio­n for a stay of the Zuma tax subpoena be heard on Monday, but it is unclear if that will happen.

At the time of publicatio­n, Segalwe had not responded to questions about why Mkhwebane was pursuing the Zuma investigat­ion now, given that Maimane made the complaint just months before Zuma was forced to step down.

The complaint arose from author Jacques Pauw’s claim in his book The President’s

Keepers that the then president had received monthly payments of R1m from Royal Security — a company reportedly owned by his close friend and businessma­n Roy Moodley.

Citing the provisions of the executive ethics code, Maimane said Zuma was obliged to declare these alleged payments as benefits, and had not done so.

“The only mention in the register of Mr Roy Moodley was the president’s use of Mr

Moodley’s Durban beachfront property in 2016,” Maimane said at the time.

He also said that it appeared Zuma had further breached the executive ethics code by using his position, or informatio­n entrusted to him, to enrich himself or improperly benefit other persons.

Maimane said that the former president appeared to have exposed himself to the risk of conflict between his official responsibi­lities and his private interests, and was paid for work or a service other than his functions as a member of the executive.

Zuma’s lawyers could not be reached for comment.

R1m

the amount allegedly paid to the former president by Royal Security — a company reportedly owned by his close friend and businessma­n Roy Moodley

 ??  ?? Edward Kieswetter
Edward Kieswetter

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