'Tax inquiry has nothing to do with The President's Keepers'

Sars is threatening criminal charges against author Jacques Pauw and the Sunday Times following allegations made about President Jacob Zuma's income and tax affairs in the book. 

Sars said it viewed the publication of confidential taxpayer information as unlawful.

PDF of 'The President's Keepers' circulating online

"I have not read that book and I am sure you don't presuppose that the Medium Term Budget Policy Statement (MTBPS) was informed by that book. It was not. 

"The MTBPS recognised that whilst the economic cycle is the most likely and significant factor driving lower revenue-collection, other factors could also be at play, like weakening tax morality and challenges facing tax administration. 

"Whatever the reason for such shortfall, the risk of under-collection of revenue impacts directly on the size of the future budget deficits," Gigaba says. 

The minister approached President Zuma for an urgent establishment of a judicial commission of inquiry, a request which was granted.

"I have informed the commissioner (Tom Moyane) of this proposed inquiry and the commissioner has expressed his support for it and willingness to cooperate," Gigaba said. "We expect this inquiry to be constructive and to strengthen the institution further where possible."

State security sets its eyes on 'The President's Keepers' author

Gigaba said it is critical for the government to determine the cause of the tax collection struggles, to ensure steps are taken to reach the revenue targets set out in the MTBPS.

"The inquiry will help to assess what factors are responsible for the under-collection of revenue by SARS, and what steps need to be taken to improve performance management systems at SARS to improve its capacity to collect revenue."