Sars Lawyer: Tom Moyane did not break the law

Sars commissioner Tom Moyane has come under fire for authorising a a R70-million VAT refund to a Gupta-linked company through a third party. He has been accused of money laundering.

Erick Smith, Legal Specialist at Sars says that under no circumstances was the law broken when making these payouts. READ: Fresh claims Tom Moyane fast-tracked fake R70m VAT payments to Gutpas

I can assure you that whilst there were different legal interpretations on the manner of which a VAT refund must be paid, I reinterate, the VAT refund was due and payable by law to the tax payer in this matter.

Erick Smith, Sars Legal Specialist

There was absolutely no transgression of the law in the payment to the tax payer in this case.

Erick Smith, Sars Legal Specialist

Smith says that Moyane's involvement in the payout is also within the bounds of the law, as he is the accountable office within Sars.

According to Smith, normally tax payers escalate their frustrations and concerns to the commissioner, but it is normally dealt with by the legal team.

[WATCH] 'Tom Moyane is a liar' - Kieno Kammies

As to the allegations of wrongdoing and evidence showing top officials warning that these payments would be highly irregular, Smith says that boils down to differences in legal interpretation.

And the issue of third party payments?

I can tell you quite openly that I was one of the legal specialists who had a different interpretation as to whether a taxpayer can be refunded to a third party bank account. Because of the Sars Act, in an attempt to prevent fraud and payments going to the wrong bank account - we had a view that we could not pay a refund to a particular account nominated by the taxpayer in this case.

Erick Smith, Sars Legal Specialist

But there has been an earlier interpretation, by a very senior tax specialist within Sars which invoked another provisional act, which provides for anomalous circumstances. And in those circumstances, the commissioner, through his official, can use his discretion to deal with anomalies.

Erick Smith, Sars Legal Specialist

Smith says this case had an usual set of circumstances. He adds that they money was due and they had to pay it. The only difficulties Sars faced was the interpretation regarding which account the money should be paid to, according to Smith.

In this case, the money was due and payable. It had been through a though audit process - so we had to pay the money.

Erick Smith, Sars Legal Specialist

The Guptas were given no favour.

Erick Smith, Sars Legal Specialist

Listen to the full report below:


Recommended

by NEWSROOM AI
Read More
[WATCH] 'Tom Moyane is a liar' - Kieno Kammies

[WATCH] 'Tom Moyane is a liar' - Kieno Kammies

CapeTalk's Kieno Kammies expresses outrage at the Sars commissioner allegedly paying millions in VAT refunds to the Guptas.

Fresh claims Tom Moyane fast-tracked fake R70m VAT payments to Gutpas

Fresh claims Tom Moyane fast-tracked fake R70m VAT payments to Gutpas

The Daily Maverick's Scorpio unit says more than R70-million was paid through third party payments for the benefit of Oakbay.

Sars commissioner Moyane wastes no time replacing Makwakwa

Sars commissioner Moyane wastes no time replacing Makwakwa

Robert Kingon has been appointed to the position of acting Chief Officer for Business and Individual Taxes.

Sars has been in the news for all the wrong reasons - Treasury

Sars has been in the news for all the wrong reasons - Treasury

Treasury has welcomed the resignation of Sars senior tax official Jonas Makwakwa.

Allegations against former Sars officials are baseless - Freedom Under Law

Allegations against former Sars officials are baseless - Freedom Under Law

Judge Kriegler says the allegations are the same as when Tom Moyane was appointed commissioner and wanted to get rid of senior staff.

Popular articles
Fraudsters are getting professional, scamming consumers with ingenious methods

Fraudsters are getting professional, scamming consumers with ingenious methods

“It makes all of us a target to fraudsters,” warns Manie van Schalkwyk of the South African Fraud Prevention Service.

'We have evidence that the EFF and Julius Malema took bribes for tenders'

'We have evidence that the EFF and Julius Malema took bribes for tenders'

Arabile Gumede interviews Stefaans Brummer, a journalist at the amaBhungane Centre for Investigative Journalism.

Mail & Guardian: Hawks investigating Floyd Shivambu's Range Rover Sport purchase

Mail & Guardian: Hawks investigating Floyd Shivambu's Range Rover Sport purchase

Investigative journalist Thanduxolo Jika gives details of the report he filed on the EFF leader and the connection to VBS.

[WATCH] 'If this world were mine', grocery store impromptu rendition goes viral

[WATCH] 'If this world were mine', grocery store impromptu rendition goes viral

Khabazela shares tweets and Facebook posts that have gone viral.

Call for arrested drug mules to serve time in SA prisons

Call for arrested drug mules to serve time in SA prisons

Locked Up SA's Patricia Gerber wants government to have a prison transfer agreement so families are involved in rehabilitation.

How to buy a new car even if you don’t really have enough money for it

How to buy a new car even if you don’t really have enough money for it

South Africans are increasingly buying cars they can’t afford using balloon payments, says consumer journalist Wendy Knowler.

Forensic investigator pokes holes in Watson death probe

Forensic investigator pokes holes in Watson death probe

The recent findings of a private pathologist ruled out suicide as the cause of death of the former Bosasa boss.