Sars said illicit economic activity linked to customs and tax systems undermines economic growth, job creation and fair competition.
The South African Revenue Service (Sars) has intensified its fight against corruption and tax evasion by throwing its weight behind the National Illicit Economy Disruption Programme.
Sars on Tuesday confirmed it is taking decisive steps to root out fraud and collusion within its ranks and across the broader tax and customs environment. It also warned that it would act firmly against anyone who undermines the system.
Search and seizure operations executed
The revenue service revealed it has already acted on allegations of corruption involving customs inspection teams, clearing agents and importers.
“Sars has been investigating allegations that customs-inspection teams colluded with clearing agents and importers to manipulate physical inspections in exchange for cash bribes,” it added.
Financial analysis linked to the case identified under-declared taxable income exceeding R45 million. As a consequence, this resulted in an estimated R18 million in lost income tax.
“To disrupt this scheme, today Sars has executed search and seizure and preservation orders against the Sars officials and related parties to secure evidence and assets,” it said.
The operation targets six current and former Sars employees, along with associated taxpayers and traders.
“Persons in question are alleged to have failed to comply with their statutory obligations as taxpayers, by participating in a corrupt scheme that has directly prejudiced all honest taxpayers and traders and the fiscus.”
‘Red line’ against corruption
Sars Commissioner Edward Kieswetter described the move as part of a broader effort to safeguard state revenue and enforce compliance.
“Those who choose to abuse this mandate, whether from within Sars or from outside, have committed a crime and must face the consequences,” said Kieswetter.
He stressed that corruption within Sars not only damages the institution but also harms honest taxpayers, in addition, it deprives vulnerable communities of essential services.
“This responsibility demands conduct beyond reproach and unquestionable integrity. Any deviation from this standard undermines the state and places the organisation into disrepute,” he said.
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Protecting the fiscus and economy
Sars said illicit economic activity, including fraud and organised corruption linked to customs and tax systems, undermines economic growth and job creation. It also undermines fair competition.
“These crimes damage and displace legitimate economic activities. Economic growth, job creation, and prosperity for all South Africans are at stake,” the statement read.
The revenue service added that its enforcement actions are aligned with its strategic goal of making compliance easier. Moreover, it aims at making non-compliance “hard and costly”.
To strengthen its crackdown, Sars confirmed it will collaborate with the South African Police Service (Saps) and the National Prosecuting Authority (NPA). The aim is to ensure successful investigations and prosecutions.
“Where evidence points to criminality, Sars will detect and pursue it, disrupt the scheme, and recover what is owed to the fiscus,” Kieswetter said.
He added that all individuals involved in criminal conduct will be held accountable, regardless of the complexity of the cases.
Public urged to report corruption
While acknowledging that most employees and taxpayers act with integrity, Sars said the latest actions are necessary. They are meant to protect honest participants in the economy.
“Far too many of our employees work diligently… for their efforts to be undermined by a few who choose to collude with criminals,” Kieswetter said.
Sars has urged members of the public and industry stakeholders to report suspected bribery, fraud and customs irregularities through its official reporting channels.
“We cannot tolerate any acts of corruption. This is a red line that no one must cross, and no position inside or outside Sars places anyone above the law,” he said.
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