SARS Scores Major Victory in Tobacco Tax Case
The South African Revenue Service (SARS) has landed a significant legal blow against businessman Roy Muleya, implicated in a multi-million rand tobacco import scheme. The High Court, North Gauteng Division, granted a provisional sequestration order against Muleya following a long legal battle.
The case revolves around a R155 million tax debt linked to a company Muleya directed. SARS initiated the legal action in September 2021 under section 177 of the Tax Administration Act. SARS alleged that Muleya played a key role in a scheme involving tobacco importation by entities with no clear ties to registered cigarette manufacturers.
According to SARS, a section 103 notice was issued to Muleya concerning a company liability of approximately R155 million, for which he serves as the sole director. This led to the sequestration application.
SARS Commissioner Edward Kieswetter emphasized the agency's dedication to upholding the law. He stated, "SARS will relentlessly pursue legally all those who are disregarding the law by seeking to bypass it. South Africa has seen proliferation of illicit tobacco and cigarettes, and the action of Mr Muleya only exacerbates this challenge."
Fighting Illicit Tobacco Trade
Kieswetter further highlighted the detrimental impact of illegal cigarette imports, stating that they "threaten the health of smokers and undermine national fiscus by withholding excise duties." He affirmed SARS's commitment to lawful action and the disruption of illicit trade activities. This ruling is a crucial step in SARS's ongoing efforts to combat tax evasion and illicit trade within the tobacco industry.
- SARS secured a High Court order against Roy Muleya.
- The case involves a R155 million tax debt.
- Muleya is accused of involvement in an illicit tobacco import scheme.
- SARS is committed to fighting tax evasion and illicit trade.