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SARS finds Phala Phala and Ramaphosa tax-compliant after rigorous audits

SARS finds Phala Phala and Ramaphosa tax-compliant after rigorous audits
Ferial Haffajee
By Ferial Haffajee
7 Mar 2023
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A tax compliance statement issued by SARS indicates that the $4m sale of game at president Cyril Ramaphosa's Phala Phala farm in 2020 has been declared. Now SA Revenue Service Commissioner Edward Kieswetter says all high-profile political office bearers should agree to make their tax affairs public as evidence of a commitment to transparency.

President Cyril Ramaphosa allowed SARS to pierce his tax confidentiality rights to reveal that his own, as well as the tax affairs of his Nyoni Estate and Ntaba Nyoni feedlot (the business names of the Phala Phala farm), are tax-compliant. 

This means that the $4-million sale of the game in 2020 has been declared, even though Ramaphosa’s staffers allegedly stole it from a leather sofa into which the proceeds were reportedly sewn. 

“SARS wishes to confirm that the taxpayers are compliant with their tax obligations to date,” the revenue service said in a statement on 7 March. It added, “To date, audits have been concluded without adverse tax findings.” 

Tax status transparency


SARS Commissioner Edward Kieswetter noted: “In taking this exceptional step to disclose the tax status of the president, with his written consent, SARS would also encourage other high-profile political office bearers and leaders in society to consider taking this proactive step as part of their commitment to transparency. This would go a long way to building confidence in our country's institutions.”

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Ramaphosa agreed to disclose his tax status after the DA said on Monday, 6 March that a PAIA request to SARS showed that the Phala Phala game buyer Hazim Mustafa had not declared the cash to customs on arrival in 2019, and that this cast a pall over the President. The SARS statement said no records could be found or did not exist. 

Changing the narrative


But the declaration of compliance of Ramaphosa and Ntaba Nyoni and Ntaba Nyoni feedlot changes the story.

Read in Daily Maverick how the scandal unfolded: “Ramaphosa’s Farmgate scandal – a timeline of what we know (and don’t know) so far”

It is the first time a South African president has agreed to reveal their tax-compliance status. Former President Jacob Zuma repeatedly refused, shielding himself with tax confidentiality rules that apply to all taxpayers. 

SARS said Ramaphosa and his farm and feedlot managers had agreed to disclosure due to the “considerable public interest” in the case. It did not elaborate on specific details. 

“The taxpayers in question have, over the years, been selected for audit by SARS well ahead of the start of media publications concerning the companies, and this has continued since then. The taxpayers have always cooperated fully with SARS during the audits, and there has been no interference or resistance from the taxpayers, their staff, or any other party.”

Kieswetter said: “At no stage was I approached by President Ramaphosa, or anyone on his behalf, with any request related to his personal and business entities in question.” 

The SA Reserve Bank is still investigating whether or not the sales were reported regarding forex rules. The SARS finding suggests that the income was reported. DM

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