Sars targets 52 noncompliant PPE companies

8th October 2021

By: Schalk Burger

Creamer Media Senior Deputy Editor

     

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The South African Revenue Service (Sars) on October 8 said it has been focusing on 52 noncompliant companies that had been awarded R1-billion in contracts for the supply of personal protective equipment (PPE) and other Covid-19-related services.

To date, 11 companies have been convicted, seven cases are on the court roll, 29 cases are with the National Prosecution Authority (NPA) for the drafting of charge sheets and/or warrants of arrest, while five case dockets are being processed by the Directorate for Priority Crime Investigation (Hawks).

Sars has recovered R170-million in unpaid taxes linked to PPE contracts and R500-million in assets (including cash) are under preservation orders.

Sars is also investigating 33 entities linked to politically exposed persons. In addition, several companies that received government tenders totalling R50-million for Covid-19-related services were recently sentenced for not registering for value-added tax (VAT), Sars said in a statement.

Commissioner Edward Kieswetter said Sars was committed to working with all enforcement agencies to ensure increasing tax and customs compliance.

“The organisation will not tire from pursuing those that abdicate their legal obligations by not registering for VAT, which is essential for qualifying companies conducting business in both the private and public sectors.

“It seems to be patently obvious that some companies are operating outside the law, seeking to profit from a devastating pandemic that is affecting the lives and livelihoods of millions of South Africans, especially the poor and vulnerable. Sadly, most of the looted funds are being used to finance lavish lifestyles,” he said.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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