#GuptaLeaks: Gupta brothers’ minimal tax returns raise questions

For a consecutive period of three years, the three Gupta brothers – Ajay, Atul and Rajesh (Tony) Gupta – have allegedly declared taxable income that rarely exceeds R1 million a year to the South African Revenue Service (Sars), according to Sars documents contained in the latest trove of leaked emails from the Gupta empire.

This is despite the brothers being well-known for their opulent lifestyles associated only with those who possess vast personal wealth.

AmaBhungane and Scorpio reports that according to the Sars documents:

• In 2011, Rajesh declared R965 000 in taxable income, with R315 670 going to pay-as-you-earn tax (PAYE).

• In 2012, Ajay declared R935 000, of which R299 196 was taxed.

• In 2013, Atul declared R1 087 616, of which R376 186 went to PAYE.

Last year, The Sunday Times’ ‘Rich List’ named Atul as South Africa’s seventh wealthiest black businessman, with a fortune of R7.6 billion.

A tax expert who spoke to Scorpio on condition of anonymity questioned the relatively small amounts of declared personal income by the brothers in contrast to media reports of the controversial family members’ lavish lifestyles.

“Given the volume of highly public information available about the Guptas, red flags should have been raised at Sars about the amounts they were declaring in taxable income.”

The tax expert said Sars gleaned its information from the press, and added there had been no shortage of Gupta-related press in South Africa over the past seven years or so.

Sars spokesperson Sandile Memela, when asked if the Guptas were ever subjected to a lifestyle audit by the revenue services, reportedly replied: “In line with the spirit and letter of the tax legislation, Sars cannot divulge specific information and details on the affairs of taxpayers.”

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