Wealthy tax evaders are not above the law

On Friday, the South African Revenue Service (SARS) provided information on a small group of wealthy individuals who have evaded taxation on a massive scale. SARS indicated that roughly 9 300 South Africans, of which most have wealth in excess of R75 million and earned more than R7 million last year, failed to properly pay their fair share in taxes. 

These 9 300 individuals are potentially responsible for a R50 billion tax shortfall. This is completely unacceptable and SARS should do everything in its power to recover all unpaid taxes. 

I will be liaising with the Chairperson of the Portfolio Committee on Finance to request that SARS presents its plan to recover these outstanding taxes to Parliament. SARS should initiate criminal prosecution in every one of these 9 300 cases. Those people who are unwilling to pay their fair share in taxes should be forced to pay up or go to jail. 

The Income Tax Act provides for such actions in great detail. Section 104 of the law states that "Any person who with intent to evade or to assist any other person to evade assessment or taxation-- shall be guilty of an offence and liable on conviction to a fine or to imprisonment for a period not exceeding five years." SARS and the Treasury should simply follow the provisions in Section 104 of the Income Tax Act and prosecute those people who have defrauded the state. 

I will furthermore be consulting with key officials at SARS and the Treasury to enquire as to how, if these individuals are known, they have been able to evade taxation for so long and on such a massive scale.  

We cannot allow multi-millionaires to live in luxury without paying their fair share. Indeed, their tax contributions are vitally important in ensuring that government is able to finance important programmes that help the poor. 

This R50 billion would, for example, finance the construction of half a million RDP houses and many other initiatives that could jumpstart economic growth and job creation. 

I will use every tool at my disposal to ensure that Treasury and SARS act to quickly find and prosecute these individuals. 

Statement issued by Dr Dion George MP, DA Shadow Minister of Finance, January 17 2012

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