High court orders release of Zuma’s tax files to media: The court held that sections of the law providing for absolute taxpayer secrecy posed an unconstitutional limitation on the right to information and gave parliament two years to correct this
has far-reaching consequences for the scheme of legislation that prohibits the media from accessing taxpayers’ information in the public interest, and found provisions of the Tax Administration Act and the Promotion of Access to Information Act unconstitutional.
But Sars opposed the application — as did the ministers of justice and finance — arguing that its obligations under the Tax Administration Act to preserve the secrecy of taxpayers’ information precluded it from disclosing it to anybody who is not an official at the revenue service. Sars had argued that this near-blanket secrecy was essential to preserve a pact between the revenue service and taxpayers whereby, in return for their full and honest disclosure, “Sars promises to keep their secrets.”
“To put it bluntly, there is no direct or factual evidence that taxpayers in South Africa rather make disclosure of their affairs because of the secrecy provisions as opposed to the coercion of the penalties and sanctions which follow upon nondisclosure,” he said.
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