R4.8bn damages claim — Kieswetter confirms SARS is gunning for Sasfin

28 Feb 2024

The wheels of justice are turning slowly in the wake of the Gold Mafia investigation, which revealed that corrupt officials at Sasfin colluded with operatives from Gold Leaf Tobacco Corporation to launder billions in stolen taxes and siphon that revenue overseas.

SARS Commissioner Edward Kieswetter is on the warpath and Sasfin is in his firing line after the South African Revenue Service (SARS) launched a R4.8-billion damages claim against Sasfin Bank.

Kieswetter issued a statement on Wednesday confirming the legal action after Sasfin published details of it in a Sens announcement on Tuesday.

“SARS conducted a thorough investigation into various South African taxpayers who had not made true and accurate tax disclosures to SARS. The investigation revealed that the taxpayers had colluded to expatriate funds offshore in a manner that obscured tracing the expatriated payments and jeopardises the recovery of tax in South Africa,” the SARS statement reads.

The commissioner’s position is that it is inappropriate to comment on liability and compensation for loss to the fiscus, as these are legal issues now before the judicial system. Given this development, SARS will not make any further comment.

https://www.dailymaverick.co.za/article/2024-02-27-gold-leaf-tobacco-sars-claims-billions-from-sasfin-in-rudland-money-laundering-debacle/

“The commissioner wishes to affirm his commitment to pursue the enforcement and recovery of taxes without fear, favour or prejudice in the interest of upholding the fiscal integrity of the South African tax system,” the statement reads.

The wheels of justice are turning slowly in the wake of the Gold Mafia investigation, which revealed that corrupt officials at Sasfin allegedly colluded with operatives from Gold Leaf Tobacco Corporation to launder billions in stolen taxes and siphon that revenue overseas.

In November, Gold Leaf Tobacco took Sasfin to the Gauteng Division of the High Court in Johannesburg to hand over a full record of the bank’s investigations into the possible manipulation and/or destruction or corruption of bank statements held by Gold Leaf.

Gold Leaf’s application was prompted by a SARS investigation into its affairs. In the main application, Gold Leaf alleged that it required the bank statements and the report to assist it in meeting the investigation and action by SARS.

‘Old computer system’

However, Sasfin responded that it was no longer in possession of the bank statements and the information contained in the bank statements was available only on an old computer system which the bank no longer used. It would need to extract the information from the old computer system and reconstruct the bank statements.

Sasfin told the court that the bank statements that it “generated” using the data from the old computer system were “unreliable” and that it did not place any reliance on the accuracy of the statements. Gold Leaf’s application was dismissed with costs.

In the current financial year, as of the end of January, SARS had conducted almost 850 illicit trade (tobacco and alcohol) interventions that resulted in 550 detentions, 160 seizures and the recovery of R13.5-billion.

SARS got the green light from the high court towards the end of last year to install CCTV cameras at licensed customs and excise warehouses. CCTV systems were installed at Gold Leaf and British American Tobacco warehouses as far back as February last year. DM

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‘Old computer system’