SOUTH AFRICAN REVENUE SERVICE
MEDIA RELEASE NUMBER 40 OF 2001

25 AUGUST 2001

SARS STATEMENT RE. MR IRWIN KHOSA

SARS - The South African Revenue Service has a consistent, transparent and even-handed policy in respect of the manner in which it deals with investigations, disputes and negotiations with taxpayers and/or their representatives.

Our policy is:

Finally, SARS will take actions such as issue assessments, initiate debt collection through both civil processes and legal prosecutions. SARS may lodge criminal charges at any stage.

SARS has the authority in terms of the legislation it administers to undertake this investigation without the co-operation of a taxpayer. However on many occasions, the South African Revenue Service has had discussions with taxpayers to find agreement and co-operation on procedural matters. This, however, does not prejudice the nature of the final outcome.

In line with the approach outlined above SARS explored with the taxpayer’s representative the taxpayer’s willingness to co-operate with this investigation on the basis of full disclosure.

Today, I have authorised a SARS representative, to sign an agreement with Mr Irvin Khoza/his representative only in respect of the process by which the taxpayer’s tax liability will be established. We wish to point out that criminal charges relating to the alleged contravention of the Income Tax Act have already been laid with the South African Police Service.

We must emphasise, that the National Director of Public Prosecutions has the sole discretion in respect of further investigations and prosecution of this matter.

The agreement also requires SARS and taxpayer representatives to agree upon the precise procedures to be followed in opening the boxes which contain the documents seized from the taxpayer.

There is absolutely no agreement or "deal" in relation to any tax liability or substantive matter, despite public remarks by the taxpayer's representative implying that a "deal" has been struck between the taxpayer and SARS.

I also want to emphasise that SARS and its officials have at all times observed the confidentiality provisions of the Income Tax Act. As a result SARS is severely handicapped in not being able to respond to irresponsible and misleading comments.

The South African public, which SARS serves, can be assured that every taxpayer will be treated in a fair and equitable manner and without favour or fear.

ISSUED BY THE COMMISSIONER FOR THE SOUTH AFRICAN REVENUE SERVICE
PRETORIA



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