South African Revenue Service on tax confidentiality of J Zuma

Tax confidentiality

26 February 2007

The South African Revenue Service (SARS) emphatically rejects all
allegations that it divulged information to the media about the tax affairs of
Mr Jacob Zuma. The Income Tax Act (Section 4) specifically prohibits any SARS
official from engaging in such practice.

SARS regularly receives media enquiries about specific taxpayers or
taxpaying entities. SARS applies a standard and consistent procedure in dealing
with such enquiries. The same approach - citing the confidentiality provisions
of Section 4 � was applied when media enquiries were received about Mr
Zuma.

SARS has a proven record of integrity, fairness and impartiality and we
remain proud of this reputation. These values underpin SARS' conduct at all
times.

SARS issues more than 70 000 summonses to taxpayers per year requesting them
to provide information on income acquired or to submit their returns. For the
current financial year SARS has been engaged in 413 matters before court. Of
these, 359 convictions were obtained.

In none of these instances has SARS been accused of violating the
confidentiality provisions of the Income Tax Act.

At the same time, SARS must appeal to those raising allegations publicly
about SARS' conduct to familiarise themselves with the Income Tax Act in order
to make better informed public statements.

When a particular tax matter appears before court it becomes a matter for
public record and part of the judicial process.

Enquiries:
Adrian Lackay
SARS Communications
Tel: (012) 422 4206
Cell: 083 388 2580

Issued by: South African Revenue Service
26 February 2007

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