Moyane lambastes KPMG, SARS to take legal action
18 September 2017
Pretoria – The South African Revenue Service (SARS) will be taking legal action against audit firm KPMG, Commissioner Tom Moyane said on Monday.
Speaking at a press briefing, following KPMG’s decision to retract parts of its report on the “rogue unit”, Moyane called the firm’s actions a “dismal attempt” to portray the tax authority and its leadership as incompetent, corrupt inefficient and engaged in a witch-hunt.
On Friday KPMG released a report based on an internal investigation, where it said that failure on its part to “appropriately apply” its own risk management and quality controls, part of the report referring to conclusions, recommendations, and legal opinions can no longer be relied on.
Moyane said that SARS was “taken aback” by the “aberrant and unethical” conduct of KPMG. SARS is taking legal action against KPMG, for reputational damage to the tax authority. SARS will report KPMG to the relevant statutory bodies, locally and international. SARS will also report KPMG to the minister of finance to consider stopping all work performed by KPMG.