Under-collection of tax most probably only a smoke screen for investigation into SARS

8 November 2017

The under-collection of tax is most probably only a smoke screen for the real reason why the Minister of Finance, Malusi Gigaba, launched an investigation into the South African Revenue Services (SARS), says Dr Pieter Mulder, FF Plus member of parliament.

According to the Minister’s statement, the investigation will focus on institutional weaknesses within SARS as well as the reasons for why there is a deficit of nearly R61 billion due to the under-collection of tax.

Dr Mulder says that such an investigation does not require the Minister’s direct intervention and that the reasons for the investigation are probably twofold.

“Firstly, faction conflicts between the Zuma and Ramaphosa camps could have played a role in the decision to launch the investigation. SARS has been affected by faction conflicts for some time now. It may also be that the investigation is nothing but a witch-hunt to determine who leaked information and documents to the author Jacques Pauw for his book entitled The President’s Keepers.

“The FF Plus would like to call on the Minister of Police, Fikile Mbalula, to take the death threats against Pauw seriously. If the government is serious about combatting corruption, then the Minister and the government must protect whistle-blowers and the freedom of the press,” said Dr Mulder.

Issued by Pieter Mulder, FF Plus member of parliament, 8 November 2017