[WATCH] Sars threatens legal action against KPMG

The auditing firm last week rescinded the findings and recommendations contained in its report into the so-called Sars spy unit.

FILE: Tom Moyane. Picture: Christa Eybers/EWN

PRETORIA – South African Revenue Service (Sars) commissioner Tom Moyane says the revenue service will institute legal action against KPMG for reputational damage and report it to the Finance Minister in a bid to have it blacklisted.

Sars is this morning publicly reacting to KPMG’s decision to withdraw its report into the so-called Sars spy unit.

It has described the report immoral, unethical and unlawful.

The auditing firm last week rescinded the findings and recommendations contained in the report, which saw the removal of several senior officials at the revenue service. It also cleared out its South African leadership, including the company's CEO.

Moyane says he was taken aback by KPMG’s unethical conduct, which left him with no choice but to institute legal proceedings.

He says Sars will launch a civil claim for reputational damage, report KPMG to relevant authorities and push for the firm to be blacklisted for its behaviour.

“It’s quite amazing and shocking for us because a tax administrator like Sars cannot be pushed into a situation where the reports you commission seem to be doubted. KMPG should be held accountable.”

Moyane says the revenue service will stop all work KPMG is currently doing, adding he's disappointed Sars wasn’t given the opportunity to discuss this matter before the firm released its statement to the public.”

WATCH: Sars briefing