Court grants preservation order against Shauwn 'MaMkhize' Mkhize

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The KwaZulu-Natal Local Division of the Durban High Court has granted a preservation order and a search-and-seizure warrant in the case involving the Commissioner of the South African Revenue Service (SARS) versus Shauwn Mkhize and others.

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SARS said the court’s decision marked a significant development in efforts to combat tax evasion and criminal activity that undermines the country’s economy.

Criminal activity

“This decision is a crucial step in SARS’s strategic objective to make it increasingly hard and costly for taxpayers who wilfully and intentionally engage in criminal activity.

“Over the past few years, SARS has been diligently investigating and cracking down on the construction industry, so that it complies with tax laws.

“SARS enforces the provisions outlined in the Tax Administration Act No. 28 of 2011, with particular focus on section 163, on preserving and securing assets,” the revenue said on Tuesday.

This recent enforcement action is one of many steps that SARS has taken in collaboration with the South African Police Service and the Directorate for Priority Crime Investigation (Hawks) to uphold the integrity of the tax system.

The orders were obtained to prevent the dissipation of realisable assets, which could hinder the collection of taxes, and to secure evidence of potential non-compliance with tax laws administered by the SARS Commissioner.

SARS Commissioner Edward Kieswetter has expressed his sincere thanks to the law-enforcement agencies – the South African Police Service, Hawks, and SARS members – for their exemplary cooperation that accomplished the assignment under difficult conditions.

“SARS will not waiver in executing its mandate without fear, favour, or prejudice, regardless of any persons’ standing in society. No one is above the law; it is therefore critically important that SARS acts emphatically to ensure that all meet their legal obligations.

“Today’s search-and-seizure operation must communicate an unambiguous message to all that law-enforcement agencies will act to stop lawlessness. The most vulnerable in our society, the aged, and children depend on the state through taxes to assuage and mitigate poverty, unemployment, and hunger. Any wilful defiance of the law will be resisted,” Kieswetter said.