It wants the court to review and set aside the rule amendments.Tobacco manufacturers are taking the South African Revenue Service to court to stop it implementing a new rule requiring them to install CCTV equipment in their warehouses as a way to monitor production and rein in galloping tax leakage, which is reckoned to cost the fiscus upwards of R20 billion a year.
“The new rules are an unprecedented governmental intervention and a grave, unjustified violation of the right to privacy and property,” argues Fita in its court application.It says this is the first time to its knowledge that Sars has required a taxpayer to be placed under constant, 24/7 surveillance.It goes on to say that the CCTV requirement is irrational, capricious and arbitrary, is clearly against the law and violates constitutional rights to privacy and arbitrary deprivation of property.
“Compliance audits at customs and excise manufacturing warehouses are dependent documentation and information given to Sars by licensees of these warehouses. These new rules are part of a package of amendments Sars intends to introduce to curb the illicit trade in tobacco products.
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