Edward-Kieswetter
The South African Revenue Service (SARS) has launched a major law enforcement operation targeting six current and former employees and associated traders suspected of orchestrating a customs under-declaration scheme that allegedly defrauded the state of about R18 million in unpaid taxes.
According to SARS Commissioner Edward Kieswetter, the investigation revealed that some customs-inspection teams allegedly colluded with clearing agents and importers to manipulate physical inspections in exchange for cash bribes.
This illegal activity allowed under-declaration of taxable imports exceeding R45 million, directly prejudicing both the fiscus and honest taxpayers.
“The persons in question allegedly failed to comply with their statutory obligations as taxpayers by participating in a corrupt scheme that has directly prejudiced all honest taxpayers and traders,” Kieswetter said. “We cannot tolerate any acts of corruption. No position inside or outside SARS places anyone above the law.”
The enforcement action involved search, seizure, and preservation orders to secure evidence and assets related to the alleged scheme. Kieswetter said the operation aligns with the National Illicit Economy Disruption Programme announced by President Ramaphosa in the State of the Nation Address, and forms part of SARS’s broader strategy to eradicate corruption and fraud in customs and tax processes.
“These crimes damage legitimate economic activities and undermine public trust. Economic growth, job creation, and prosperity for all South Africans are at stake,” Kieswetter added.
The revenue service will work closely with the police and National Prosecuting Authority to ensure criminal investigations lead to successful prosecutions.
+SARS also praised the investigative teams, stressing that the majority of its employees act with integrity and dedication, and that the actions of a few corrupt officials cannot be tolerated.
