Tax is an important weapon in clawing back 'ill-gotten gains'

moneyweb.co.za

- moneyweb.co.za | 2 months ago

The level of corruption in South Africa, the complete lack of accountability and the ostensible lack of urgency in bringing offenders to book continues to irk honest law-abiding South Africans.

However, an important weapon available to the state to recover some of the ill-gotten gains is tax, says Aneria Bouwer, tax partner at law firm Bowmans. She says income from “illegal activities” is still income and subject to income tax, even if the money ending up having to be repaid.

“In the context of corruption, it is more likely that these types of payments have not been declared at all in the tax returns of the recipient, or if they have been declared, that the nature of the amounts was not reflected correctly.

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