South Africa: Scorpio - the Moyane Dossier, Part 1 - How SARS Boss Disregarded the Law to Pay Guptas' Vat Refund

Outside the South African Revenue Service (SARS) office in Cape Town (file photo).
analysis

Tax boss Tom Moyane aided possible acts of money laundering and fraud while contravening the VAT and Tax Acts when he allegedly pressured SARS officials to illegally effect three VAT payments to the Guptas into the account of a third party.

While locally based corporate entities to this day struggle with cash flow problems due to "inordinate" delays in SARS paying out VAT refunds, the Guptas in the past seem to have had no such headaches.

To the contrary, within two weeks from Oakbay Investments (Pty) Ltd director Ronica Ragavan's first "urgent" request dated 22 May 2017, SARS paid the first of three VAT payments amounting to R70-million. Two smaller VAT payments were pushed through in July and August 2017.

The legal battles in SARS were waged about the interpretation of the discretion of the commissioner (section 72) of the VAT Act and how it is interpreted with amended section 44(3)(d).

SARS' brightest legal minds all agreed: A VAT payment into the account of Terbium for the benefit of Oakbay and affiliated companies is illegal. Especially given the family's reputation, it opens the door for possible money laundering and fraud.

Moyane and Mokoena disagreed....

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