Jacob Zuma medical parole arthur fraser

The Pretoria High Court ordered SARS to hand over Zuma’s taxes within 10 days. Photo: Gallo Images / Die Burger / Lulama Zenzile

SARS forced to hand over Zuma tax records within 10 days

The Pretoria High Court ordered SARS to provide former President Jacob Zuma’s tax records for the period 2010 to 2018 to two media houses, as it is a matter of public interest. It is alleged that he did not pay taxes for the first seven years of his term and received undisclosed income.

Jacob Zuma medical parole arthur fraser

The Pretoria High Court ordered SARS to hand over Zuma’s taxes within 10 days. Photo: Gallo Images / Die Burger / Lulama Zenzile

The Pretoria High Court ordered, on Tuesday, 16 November, the South African Revenue Service (SARS) to provide former President Jacob Zuma’s tax records to investigative journalism outfit amaBhungane and the Financial Mail within 10 days, as his tax records are a matter of public interest.

amaB AND FM WIN ZUMA TAX RECORD BATTLE

AmaBhungane said the court found in favour of its application that challenged SARS’ refusal to disclose Zuma’s records for the period 2010 to 2018.

After the court ruling, SARS will have to provide the information by Friday, 26 November, unless they lodge a cross-appeal.

The Financial Mail first tried to access the records in February 2019 by filing a Promotion of Access to Information Act (PAIA) application. The PAIA application and appeal were both denied by SARS on the grounds of taxpayer confidentiality.

Fin24 pointed out that PAIA excludes tax information from its public interest considerations. The publications escalated the matter by filing an application with the North Gauteng High Court to access Zuma’s records on 26 November 2019.

CONCOURT TO CONFIRM RULING

At the time, Financial Mail editor Rob Rose said the existing legislation was unconstitutional because it prevents access to information about the tax compliance of senior members of the executive that are accused of serious crimes like Zuma.

It is alleged – in a founding affidavit by Warren Thompson, an FM journalist – that Zuma evaded tax payments while he was president and received income from undisclosed sources.

The affidavit also referenced Jacque Pauw’s The President’s Keepers, which claimed the president did not submit tax returns for the first seven years of his term in office.

AmaBhungane repeated those allegations when it announced the victory in court on Tuesday afternoon.

“The @FinancialMail and @ThompsonWarren8 had pointed to allegations that Zuma was not tax compliant while he was president – an issue manifestly in the public interest – when requesting his tax records in terms of PAIA. SARS refused the request and the appeal failed,” said amaBhungane.

The media houses applied for the High Court to declare provisions of PAIA and the Tax Administration Act (TAA) unconstitutional because of the blanket protection it provided to individuals like the former president even when the disclosure of said tax records are in the public interest.

“The High Court endorsed the media houses’ argument that the TAA failed to strike the right constitutional balance between access to information in the public interest and taxpayers’ right to privacy,” said amaBhungane.

The court declared the relevant provisions of TAA and PAIA invalid. The invalidity of the provisions was suspended for two years pending the correction of Constitutional defects by parliament.

The order, however, stands and has been referred to the Constitutional Court for confirmation.

“The decision affirms the Constitution’s recognition of transparency as vital to democracy, by once again striking down a law that provides for an absolute prohibition on disclosure,” said amaBhungane.