The Times online (1/3/2008) — 03/03/2008
ZUMA TRIAL: TAX FRAUD EVIDENCE PRESENTED TO COURT

Failure to declare R2.7m in payments from Schabir Shaik alleged
The National Prosecuting Authority alleged in the Constitutional Court last week that Jacob Zuma, the president of the ruling African National Congress, 'failed to disclose' to the South African Revenue Service and to Parliament for the nine years from 1995 to 2003 that he had received 583 payments from the convicted fraudster, Schabir Shaik. According to the indictment filed in the Pietermaritzburg High Court on December 28, 2007, Zuma failed to submit tax returns for nine years from 1995 to 2003. In papers filed on Thursday by the NPA in the Constitutional Court - where Zuma is attempting to challenge controversial August 2005 search and seizure raids - it is alleged that he failed to declare taxable income of R2.7 million and evaded tax of R1.6 million.
 
No comment on tax evasion allegations by Revenue Service
SARS refused to comment, stating that confidentiality provisions in the tax legislation prohibited it from 'publicly disclosing details pertaining to the tax affairs of particular taxpayers'. It could not say when it had become aware of the alleged failure to submit tax returns, or what action it took to get Zuma to submit his tax returns. Legislation meant it could also not disclose whether Zuma was subject to an investigation by SARS prior to the NPA investigating his tax affairs. It could not disclose whether any of its investigators were working with the NPA and it would not say whether it had investigated Shaik for any irregularities. Section 4 of the Income Tax Act states that: 'Every person employed or engaged by the Commissioner in carrying out the provisions of this Act shall preserve and aid in preserving secrecy with regard to all matters'. According to the law, first time offenders who fail to submit their return can be fined R300.00 Subsequent offences increase in increments of R300. It could not be immediately determined whether Zuma had been fined or whether he had paid the fines. However, if Zuma should be found guilty of contravening any tax legislation, apart from the headlines it would create, he could find his name in advertisements which SARS uses to 'name and shame' defaulters.