SARS’s Illicit Economy Strategy targets corruption and fraud in government departments as high-priority focus areas. Through an ex parte application in the Gauteng Division of the High Court in Pretoria, under section 163 of the Tax Administration Act, SARS has secured a preservation order against two of its former officials, who had resigned from the organisation in 2024 and 2025, respectively.
In addition to meeting the statutory threshold prescribed in the Tax Administration Act for granting a preservation order, SARS presented prima facie evidence before the court of non-compliance with the relevant tax laws by two officials, including corruption, money laundering, unauthorised work outside SARS, breach of the SARS secrecy provisions, and abuse of state properties in furtherance of corruption. The court appointed a curator bonis to preserve assets and prevent their dissipation while tax assessments are being finalised.
The preservation order places under curatorship three immovable properties, six vehicles, and multiple bank and investment accounts held across major financial institutions, to prevent their dissipation. Apart from the assets identified by SARS, the curator has been authorised by the High Court to inquire into and locate further assets that have been concealed or placed beyond the reach of SARS.
The properties, estimated to be worth several million rand in total, may not be sold or transferred without authorisation, thus securing high-value assets pending the finalisation of tax assessments. The curator has been granted immediate powers to secure, control, manage and, where authorised, dispose of the assets to recover taxes due.
Acting SARS Commissioner Dr Johnstone Makhubu said corruption within the institution would be dealt with swiftly through the adoption of the most severe measures permitted by law. “Corruption by SARS employees, whether former or present, is the worst form of betrayal. It undermines public trust, damages the integrity of our systems, and strikes at the heart of the state’s ability to serve its people”.
Dr Makhubu added that the preservation order demonstrates SARS’s commitment to act decisively. “We are acting early, securing assets, and following the money. Where corruption intersects with tax and customs systems, SARS will intervene swiftly and lawfully. No one is above the law, especially those entrusted to enforce it”.
SARS’s Illicit Economy Strategy gives effect to the National Illicit Economy Disruption Programme as announced by the President of South Africa in the State of the Nation Address. The latest action protects the revenue base; combats corruption and criminality within and outside SARS; restores institutional integrity; and delivers visible consequences for non-compliance.
SARS is thankful to loyal employees and citizens who, through whistleblowing, have brought this criminality to its attention and enabled the organisation to uncover complex corruption schemes. SARS confirms that further civil, administrative, and criminal processes may follow as investigations progress.
SARS urges the public to protect the integrity of our tax and customs systems and report corruption, tax fraud, and related criminal activities through its confidential platform. “The days when employees engage in criminality and opt to resign rather than face the consequences of their wrongdoing are over. Those who think that this method will exculpate them from the consequences of their actions, must know that they’ll be pursued and will be found wherever they are”, Makhubu concluded.
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