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Sars tax evader system could be in jeopardy

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Johannesburg - The crown jewel in the arsenal of prosecutions by the SA Revenue Service (Sars), a computer system which, among other things pointed the finger to Robert Huang, a business associate of President Jacob Zuma's cousin Khulubuse and a rumoured financier of the ANC, could be jeopardised due to a strong outflow of expertise, Netwerk24 reported on Thursday.

The Sars risk engine, which is highly regarded internationally, has, since it was implemented, pointed out billions of rands in extra tax responsibilities.

Since the system was implemented, it has led to R55bn in extra tax being collected by Sars.

An in depth Sars investigation has revealed that Huang, his wife and at least eight companies owe Sars "according to a conservative estimate" also more than R1bn.

READ: Zuma man could owe Sars R1.8bn

Sars court documents detail a picture of a network of fraud and money laundering schemes and holds Huang and Mpisi Trading 74 directly responsible for the mess. Huang is a director of Mpisi. The tax investigation has not been finalised.

Mpisi Trading 74, a clearing agent, was involved in the disastrous import of ANC T-shirts shortly before the national election in May last year.

The Sars risk engine had noticed the shipment of ANC T-shirts which Mpisi wanted to bring into the country.

Khulubuse Zuma and Huang have had close business ties in the past, according to the Mail & Guardian. Khulubuse was, among other things, the chair of Mpisi.

Four independent sources said they are worried about the future existence of the risk engine, because it has become "too clever and too successful" in its prosecution of tax evaders.

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