Nugent research is part of a possible motive for the dissolution of the enforcement units of Sars



The session focused on the collapse of the enforcement capacity in the Revenue Service and such investigations were transferred to an audit unit.

FILE: Retired judge Robert Nugent pictured on July 2, 2018. Photo: EWN.

JOHANNESBURG – Questions have arisen about the possible motive to dissolve the enforcement units of the Revenue Service, with suggestions that there may be criminal intentions.

This was one of the entries from the Nugent Commission of Inquiry, which is Wednesday in Pretoria.

Robert Nugent, a retired judge, was charged with investigating tax administration and administration over a period of four years from 2014.

The session focused on the collapse of the enforcement capacity in the Revenue Service and such investigations were transferred to an audit unit.

Former South African Revenue Services (Sars) research manager Keith Hendrikse says that after their unit was closed, an audit unit joined a case with a prominent figure from Cape Town, who owed the state R400 million.

"That prevented Sars from collecting money for two years, and to date the taxpayer has not paid a penny, which I believe was a deliberate attempt to derail that process."

Commissioner Michael Katz asked Hendrikse for clarity.

"Has the suggestion been made to benefit this taxpayer?"

To which Hendrikse responded: "That is my suggestion, probably one of the biggest crimes in South Africa."

Nugent asked the attendant to question the auditor who intervened in this case.

ENFORCEMENT OF TAX COMPLIANCE

Several witnesses at the Nugent Commission of Inquiry have described how the decimation of the enforcement units of the Revenue Service left the organization without the possibility to investigate cases of non-compliance.

The head of the enforcement unit, Pieter Engelbrecht, was asked whether the new business model created inefficiency in the ability to enforce compliance with tax legislation.

"It created a shortcoming in our ability to execute and operate within the illegal economy."

Prosecutor-in-chief Carol Steinberg presented an affidavit to Hendrikse, who described the effect of the dissolution on new cases of tax debt exploration.

"She says that no cases have been generated in the past few years, and that is due to the fact that this capacity is not being relocated but is being shut down, saying that there is very little to do. & # 39;

The hearings are resumed on Thursday.

(Edited by Zamangwane Shange)


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