MOU between BBBEE Commission and SARS Signed

Department of Trade and Industry

A Memorandum of Understanding (MOU) between the Broad-Based Black Economic Empowerment Commission and the South African Revenue Service (SARS) is in place.

The trade and industry department announced the MOU in Government Gazette 41754.

Some of the aims of the MOU include establishing cooperation between SARS and the BBBEE Commission on programmes that can complement or supplement one another, refer alleged contraventions for resolution and identify, discuss and recommend common strategies and areas of cooperation.

Part of the MOU involves SARS agreeing to share information with the BBBEE Commission on possible fronting or non-compliance with the BBBEE Act.

In turn, the BBBEE Commission has agreed to inform SARS of major BBBEE transactions concluded and ownership and management control details of entities flowing from BBBEE transactions.

The Commission must also share information with SARS on suspicious illegal activities that could impair revenue collection.

The MOU will be in place for three years.

Sabinet Cape Town Office