On 19 August, the South African Revenue Service (SARS) sent two “audit findings” letters to a lawyer representing Linkway Trading, a low-key cog in the Gupta family’s money laundering machinery. The SARS letters were to inform Linkway that its assessments for income tax and VAT had been massively adjusted for the tax years 2013 to 2016.
SARS alleged that Linkway had effectively underdeclared taxable income by R197.5-million and had reclaimed R24.5-million in VAT it was not eligible for. That translates into a tax liability likely in the region of R80-million, excluding interest and penalties.
Linkway’s main claim to fame is being the conduit through which R30-million came into the country from Dubai to pay for the infamous and absurdly lavish Sun City wedding of 2013.
The extravaganza was claimed as a business expense using some creative accounting and the connivance of KPMG audit partner Jacques Wessels, as previously reported by amaBhungane and our #GuptaLeaks partners.