SA, US tax services tackle tax evaders

THE SA Revenue Service (Sars) has partnered with the US Internal Revenue Service Criminal Investigation Division (IRS-CI) to combat transnational crimes.

In a joint statement issued by Sars and the IRS-C, the organisations said their collaboration was aimed at identifying and investigating international public corruption, cyber fraud and money laundering with a focus on non-compliant wealthy individuals and offshore tax evasion.

Sars Commissioner Edward Kieswetter said one of their strategic objectives was to make it easy for taxpayers to adhere to their tax obligations and make it difficult and costly for those who intentionally refuse to adhere.

“We trust that this partnership will yield results, also in terms of augmenting our internal skill sets as we clamp down on illegal activities affecting both our countries,” said Kieswetter.

IRS-CI director of global operations Guy Ficco said the global fight against financial crimes was not one that could be fought by any one country.

“Taxpayers and tax professionals using offshore and other sophisticated schemes to evade US and South African laws will be uncovered and prosecuted to the full extent of the law,” said Ficco. One of the outcomes of this collaboration between the two countries is an ongoing training endeavour led by the IRS-CI to share financial investigative techniques, train South African law-enforcement officers and government officials as well as highlight adjudicated international case studies relevant to both countries.

The IRS-CI also delivered an offshore tax evasion training webinar earlier this month to 40 Sars enforcement officers which included transnational financial crimes specific to offshore banking schemes, tax evasion and conspiracy.

The joint statement revealed that the recent partnership had already uncovered emerging schemes perpetrated by promoters, professional enablers and financial institutions.