Former Associate of Gupta Family Issued Massive R2.6 Billion Tax Bill in South Africa

South African authorities have recently issued a colossal R2.6 billion tax bill to Salim Essa, a former associate of the infamous Gupta family. Essa is notorious for his involvement in corrupt deals with state entities, including the multi-billion rand locomotive procurement deal between China South Rail and Transnet, South Africa’s state-owned transport operator.

In addition to the locomotive deal, Essa is also linked to a consultancy contract with Regiments Capital and a corrupt agreement between Transnet and the global consulting firm, McKinsey & Company. These deals are part of a larger pattern of state capture in South Africa, where private individuals and companies manipulate state decisions and contracts for their financial gain.

The South African Revenue Service (Sars) is determined to recover the owed amount. After finding that Essa had under-declared his income from 2012 to 2019, Sars has proposed adjustments to his tax bill. The proposed adjustments range from R1.5 million in 2012 to a staggering R1.5 billion in 2016. During their investigation, Sars discovered 15 companies allegedly used by Essa to divert income or disguise its actual source to avoid paying accurate taxes.

Essa has been given 21 days to make representations, and a failure to respond will result in Sars proceeding to raise assessments without further notice. This case serves as a reminder of the relentless pursuit of justice against financial corruption and the long arm of the law.