By Bahle Gama
South African President Cyril Ramaphosa has given consent to the SA Revenue Services (SARS) to make a public statement concerning his Tax affairs as well as Ntaba Nyoni Estate and The Feedlot.
SARS on Tuesday said the entities’ consent was provided by the Public Officer for each of the companies respectively appointed in terms of section 246 of the TAA, 2011 and responsible for all acts and matters of a company for tax purposes.
SARS stated that in terms of TAA, it may select a person for inspection, verification or audit based on any consideration relevant to the proper administration of a Tax Act, including on a random or risk assessment basis.
Taxpayers are detected for compliance interventions based on the sophisticated case selection methodology developed by SARS that draws on available data from statutory declarations by Taxpayers, data from third-party providers as well as other sources.
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SARS said it “conducts its compliance interventions with utmost care and independence.” Based on this approach, the Taxpayers in question have over the years been selected for audit by SARS well ahead of the start of media publications concerning the companies and this has continued since then.
This is in terms of Section 69 (6) of the Tax Administration Act No 28 of 2011. Without the express written consent of the Taxpayer and the Public Officers, SARS would be prohibited by law from making a statement.
“Through its staff and advisors, the Taxpayers have always cooperated fully with SARS during the audits and there has been no interference or resistance from the taxpayers, their staff, or any other party,” states SARS.
SARS Commissioner, Edward Kieswetter confirmed that at no stage was he approached by Ramaphosa or anyone on his behalf with any request related to the person or business entities in question.
He further stated that in taking exceptional steps to disclose the tax status of the President with his written consent, “SARS would also encourage other high-profile political office bearers and leaders in society to consider taking this proactive step.”
He stated that this will display as part of their commitment to transparency. It would go a long way towards building confidence in the country’s institutions.
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According to the Commissioner, to date, audits have been concluded without any adverse tax findings.
“SARS wishes to confirm that the Taxpayers are compliant with their Tax obligations to date,” he said.
Kieswetter added that SARS has always assured the public that they act without fear, favour or prejudice and will continue to do so in respect of any taxpayer and trader regardless of their position or place in society.
“Together with treating every taxpayer with the confidentiality granted in law, this level of professional integrity, beyond reproach, is fundamental to the public having confidence in SARS. We will always honour these principles and will not favour anyone regardless,” he said.
The SARS statement comes just a day after it had responded to the Democratic Alliance that the dollars found stashed under his couches and mattress were not declared to them as Ramaphosa and the businessman had alleged.
The leader of the official opposition, the Democratic Alliance’s (DA) John Steenhuisen announced that he has been informed by SARS that there was no trail of a declaration.
The information was directly obtained from SARS following a request submitted in terms of the Promotion of Access to Information Act (PAIA).
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In 2022, Ramaphosa claimed to have received over E10.5 million ($580 000) from a Sudanese national, Hazim Mustafa which was payment for cattle as part of a legitimate business transaction.
Mustafa claimed to have complied with the requirement to declare the money to SARS officials at OR Tambo airport when entering South Africa.
“The SARS customs policy on excess currency stipulates that ‘every person must declare’ foreign currency upon arrival in the country. Failure to adhere to this provision is an offence that may be criminally prosecuted,” said the DA leader.
With the intent to verify both parties’ claims, Steenhuisen submitted a PAIA request to SARS on December 7, 2022, to obtain relevant currency declaration forms submitted by Mustafa to declare the money he was bringing into the country.
“The DA received SARS’ response this morning (Monday), with the revenue service confirming that ‘the record does not exist and/or cannot be found’. This was accompanied by an affidavit from Siyabonga Nkabinde, a legal specialist in SARS’ corporate legal services department,” said Steenhuisen.
Ramaphosa had a busy Monday. He also wielded the axe in the Cabinet reshuffle. He finally appointed the Minister of Electricity to try and deal with the Eskom disaster that has plunged the country into darkness.
Paul Mashatile was announced as the Deputy President of South Africa, replacing David Mabuza who resigned from the position following the ANC’s December elective conference.
