The South African Revenue Service (Sars) identified 105 cases of potential tax noncompliance by politically exposed persons in the three years between 2022 and 2025, finance minister Enoch Godongwana has revealed.
Of these, 29 cases were subjected to audit, resulting in additional assessments totalling R107m, which were followed by debt collection interventions.
Politically exposed persons, or prominent influential persons as the Financial Intelligence Centre Act refers to them, include the president, deputy president, government ministers and deputy ministers, provincial premiers and members of their executive councils, municipal executive mayors, leaders of registered political parties and senior traditional leaders.
The definition includes family members and close associates of these individuals. These persons are subject to enhanced due diligence because their positions can be abused for illicit activities such as money-laundering and corruption.
Read: SANSIA BLACKMORE: South Africans are not undertaxed — the politically connected are hacking us
Godongwana said 24 cases were under audit pending finalisation after consideration of supporting documentation, and 52 cases remained in the risk profiling stage, pending further analysis and potential selection for audit.
“These figures demonstrate Sars’ continued commitment to evidence-based, risk-driven compliance interventions, ensuring that all taxpayers, regardless of their public standing, are held to the same standards of accountability,” Godongwana said in a written reply to a parliamentary question by FF Plus MP Wouter Wessels.
He said Sars had set up a dedicated segment for prominent individuals and related entities, the role of which is to provide enhanced service and drive voluntary compliance of politically exposed persons.
He said Sars followed a risk-based methodology to ensure objective risk assessment that led to credible, randomised case selection.
“In instances where an audit is justified, Sars conducts it in a fair, professional and impartial manner without fear, favour or prejudice. If noncompliance is detected, Sars applies all available legal and administrative tools to make noncompliance hard and costly.”
Enhanced surveillance of politically exposed persons is one of the requirements of the Financial Action Task Force (FATF), the international watchdog that sets standards for regimes to combat money-laundering and terrorism financing.
FATF greylisted South Africa in February 2023 due to deficiencies in its regime. It was lifted last month.
FATF requires financial institutions to apply additional measures, such as enhanced due diligence and ongoing monitoring, to business relationships involving politically exposed persons to prevent financial crime.
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