SARS to target corporates avoiding tax – Gordhan

Noting that certain transactions were being structured ‘in such a way that they show complete and reckless disregard for tax morality and SA tax law’, he added; ‘Through elaborate structuring, these deals seek to deliberately avoid the tax consequences that should flow from the associated transactions, thereby robbing not only the fiscus of tax revenue, but all South Africans.’ According to a report on the IoL site, SARS spokesperson Logan Wort said SARS was looking at both legal tax avoidance and illegal tax evasion. Some companies were believed to be setting up ‘aggressive tax structures’ primarily to avoid paying tax rather than to further their businesses and, while this was not technically illegal, it was against the morality of the tax laws. Wort said that where companies were acting illegally, SARS was warning them. Where they were aggressively avoiding tax, SARS was appealing to their morality to comply with the spirit of the law. Full report on the IoL site