BRITISH American Tobacco (BAT), the largest company listed on the JSE and an investor darling, seems to be squarely in the sights of the SA Revenue Service (SARS).A letter sent by SARS to all the country’s tobacco companies on March 6, now obtained by Business Times, reveals that a tax probe in recent months has laid bare rampant illegal and unethical industry practices.While SARS does not name specific companies, industry insiders said the letter referred to poor behaviour across the board — from large operators such as BAT to smaller “value-brand” companies under the banner of the Fair-Trade Independent Tobacco Association.The letter was signed by SARS investigations head Johann van Loggenberg, and sent to Lieutenant-General Anwa Dramat, who heads the Hawks crime-fighting unit, which suggests arrests and prosecutions could follow.Mr Van Loggenberg said the companies “have been found wanting when it comes to accounting for and complying with their income-tax obligations”. Damningly...
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