By Modupe Gbadeyanka
South African Revenue Services (SARS) Commissioner, Mr Tom Moyane, has disclosed that the agency will take legal action against foremost accountancy firm, KPMG, for revealing details of a confidential report it had compiled for the tax office.
Mr Moyane, while addressing a televised news conference on Monday, described the firm’s action as “unethical” and “unlawful”, saying it has caused a reputational damage.
He further said because of this, SARS will report KPMG to the Minister of Finance, Malusi Gigaba, with a view to blacklisting the firm and will also ask the parliament to investigate the auditor.
Speaking at the news conference on Monday, Mr Moyane said, “SARS has been completely taken aback by KPMG’s aberrant and unethical conduct.
”KPMG unilaterally announced the purported withdrawal of its report despite the existence of a service level agreement governing the relationship between the parties.
“SARS sees KPMG’s conduct as nothing else but a dismal attempt to portray SARS, its leadership, and in particular (the) SARS Commissioner as incompetent, corrupt, inefficient and involved in a witch-hunt,” the tax agency boss disclosed.
Last Friday, KPMG admitted “flaws” in a report that it compiled for SARS, which implied that former Minister of Finance, Pravin Gordhan, had helped set up a rogue spy unit when he was head of the service.
The firm had also fired its management team in South Africa after an internal investigation into the work done for the Guptas, who were alleged of getting undue favours from President Jacob Zuma.
KPMG could not be immediately reached for comment on this issue as at the time of publishing this report.
