SARS Concretise the Criminality of Tax Non-Compliance
Tax Consulting South Africa
On the frontiers of tax technical expertise & optimal compliance assurance
Demonstrating the strong stance on criminalising tax non-compliance, SARS and the IDAC have joined forces to combat financial crimes, including tax crimes. This alliance will bolster capacity to make non-compliance hard and costly.
The scope of criminal charges for contravention of tax legislation does not stop with taxpayers being non-compliant as individuals. It extends to individual taxpayers controlling non-compliant companies, and which does not stop at the company (individual holding control) merely paying a fine for its tax misdemeanours.
Through various on-going tax fraud cases, SARS, has made evident that “personal liability” encompasses both financial liability as well as criminal liability, for the individual exercising factual or financial control over a company.
If found guilty of tax non-compliance, it can lead to a prison sentence and even if it is suspended, the responsible individual will have a criminal record against his or her name.
Fraud Charges Finds Durban Businessman Behind Bars
Recently on the chopping block is Durban businessman, Thoshan Panday, who is currently behind bars, contemplating the 27 counts of fraud, or alternatively, contravention of tax legislation, he faces!
Panday’s recent arrest on tax fraud charges is part of a broader legal battle he is embroiled in, with prior accusations also extending to fraud, corruption, and racketeering charges. The intricate web of allegations highlights the far-reaching consequences that can stem from fraudulent financial practices conducted by individuals, through legal entities such as companies and closed corporations under their financial control.