SARS takes legal action against Sasfin for alleged tax evasion
SARS has launch legal action against Sasfin bank, they accuse the bank of an unlawful scheme that has resulted in tax evasion.
The South African Revenue Service (SARS) has initiated decisive legal action against Sasfin Bank, alleging the facilitation of an unlawful scheme resulting in significant tax evasion.
Commissioner Edward Kieswetter confirmed the institution of legal proceedings, stating, “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.”
According to Kieswetter, taxpayers colluded to expatriate funds offshore in a manner that concealed their payments. This potentially jeopardised tax recovery in South Africa.
SARS WITHHOLDS COMMENT AMID LEGAL PROCEEDINGS
In response to queries regarding liability and compensation, SARS refrained from commenting, citing ongoing legal proceedings.
Additionally, Kieswetter reiterated SARS’s commitment to enforcing tax regulations impartially.
Meanwhile, Sasfin Holdings Limited shareholders were informed of a civil summons served to Sasfin Bank. The summons amounts to R4,872,327,649.27 plus interest and costs.
SASFIN SUMMONED BANK OVER ALLEGED TAX COLLECTION FAILURES
Moreover, the summons alleges Sasfin Bank’s failure to collect income tax, value-added tax, and penalties owed by former foreign exchange clients.
Sasfin Holdings defended its position, asserting that the claim lacks merit and is unlikely to succeed. Furthermore, the bank highlighted its proactive measures upon discovering the unlawful scheme, including terminating relationships with implicated clients and employees.
Additionally, Sasfin engaged with regulators and obtained a legal opinion, which suggests the claim falls outside applicable law parameters.