As the National Prosecuting Authority (NPA) was revealing in papers submitted to the Constitutional Court how African National Congress president Jacob Zuma allegedly failed to declare his income to the taxman, the South African Revenue Service (Sars) on Friday was keeping mum.
Responding to a set of written questions submitted by the South African Press Association (Sapa) on the NPA’s allegation, Sars said: ”The confidentiality provisions contained in tax legislation, in particular section four of the Income Tax Act for the purpose of this inquiry, prohibit Sars from publicly disclosing details pertaining to the tax affairs of particular taxpayers.”
According to the indictment filed in the Pietermaritzburg High Court on December 28 2007, Zuma failed to submit tax returns for nine years from 1995 to 2003.
In papers filed on Thursday by the NPA in the Constitutional Court — where Zuma is attempting to challenge controversial August 2005 search and seizure raids — it is alleged that he ”failed to disclose” to Sars or Parliament that he received 583 payments from fraud convict Schabir Shaik.
It also alleges that he failed to declare taxable income of R2,7-million and evaded tax of R1,6-million.
Sars said it could not say when it had become aware of the alleged failure to submit tax returns, or what action it took to get Zuma to submit his tax returns.
Sars said the legislation meant it could also not disclose whether Zuma was subject to an investigation by Sars prior to the NPA investigating his tax affairs.
Sars could also not disclose whether any of its investigators were working with the NPA and it would not say whether it had investigated Shaik for any irregularities.
Section four of the Income Tax Act states that: ”Every person employed or engaged by the commissioner in carrying out the provisions of this Act shall preserve and aid in preserving secrecy with regard to all matters …”
According to the law, a first time offender who fails to submit their return can be fined R300. Subsequent offences increase in increments of R300.
It could not be immediately determined whether Zuma had been fined or whether he had paid the fines.
However, if Zuma should be found guilty of contravening any tax legislation, apart from the headlines it would create, he could find his name in advertisements which Sars uses to ”name and shame” defaulters.
”In the past Sars has placed advertisements in the media which contained the names of tax defaulters who have been found guilty in a court of law.
”Sars may do the same again in future.” – Sapa