The State’s criminal prosecution of Shauwn Mpisane appears poised to crumble after an about-turn by Sars.
|||Durban - The State’s criminal prosecution of Durban businesswoman Shauwn Mpisane for tax fraud appears poised to crumble amid a sudden decision by the SA Revenue Service (Sars) to pursue her in a civil case instead of trying to recover unpaid taxes.
Sources close to the investigation told the Sunday Tribune Sars had already confirmed its intention to proceed with a civil claim and was consolidating all the information needed to do so.
The decision comes amid a complaint by Mpisane’s legal team to the national director of public prosecutions (NDPP), accusing state prosecutor in the matter, Meera Naidu, of acting unfairly and improperly in the prosecution of Mpisane.
“Senior Sars officials are livid at the conduct of Naidu in court as they feel she has not acted in an ethical manner and don’t want Sars to be seen as a state organ that recovers taxes in an unethical manner,” said an official.
“Some Sars top brass have been overseeing the case, even flying down from Pretoria to attend court proceedings because of the damage they feel has been done to the organisation.
“They’ve had enough, which is why they finally opted last week to initiate a civil claim instead against Mpisane. Sars also intends to make a submission to the NDPP on the way the NPA (National Prosecuting Authority) has conducted the process in court.
“They want to distance themselves from any unfair process while trying to ensure their reputation remains intact by announcing they will still recover the taxes from Mpisane through a civil court, leaving the NDPP to decide if they wish to continue with the criminal prosecution.”
The trial, which resumes in the Durban Magistrate’s Court on Monday, is expected to be postponed when the NPA announces it will investigate the complaint lodged by Mpisane’s team.
A decision on whether to continue with the criminal prosecution will be made following the outcome of that investigation.
Expressing disbelief at Sars’s sudden change in tactics, a senior source close to both Sars and the NPA said there now appeared to be a rift between the two sides (Sars and the NPA) amid fears that its case against the business- woman is weakening.
“Sars feels its credibility is at stake here and Naidu must take responsibility for the flaws uncovered by the defence in the prosecution process. I get a sense Naidu is being made the fall guy to protect the reputation of Sars,” said one of the sources.
“It’s unbelievable that after spending millions pursuing Mpisane in a criminal process spanning two years with lengthy audits that Sars is now turning around, saying they intend to bring a civil claim to recover the tax.”
Mpisane has said she was being maliciously prosecuted by Sars after refusing to bribe top Sars officials who approached her.
Sunday Tribune