Deputy Chairperson, members will have to bear with me - this is a rather longish reply. I would like to thank hon Feldman for the question.
As hon members are aware, Ministers and Deputy Ministers are required, in terms of the code of ethics for Members of Parliament and the Executive Members Ethics Act and code, to disclose details of their financial interests, assets and gifts received. Senior public servants from the level of director upwards are required to do the same in terms of the Public Service Regulations.
I am sure that you are aware that violations of the parliamentary code are handled by Parliament and have been dealt with effectively in the past. Complaints against violations of the executive ethics code can also be dealt with by the Public Protector.
As I reported in the National Assembly last week, the SA Revenue Service conducts investigations of people who appear to be living beyond their means. These investigations start on the basis of information obtained from various sources, including the Sars anticorruption and fraud hotline, the income tax returns a taxpayer submits to Sars and reports of suspicious activity from members of the public.
A lifestyle questionnaire is one method of obtaining information from a taxpayer and, together with other information sources, assists Sars in matching the lifestyle trends, income streams and the asset base of a taxpayer to what has been declared in an income tax return. The accumulated wealth has to be explained by the taxpayer for tax purposes. Any unexplained wealth is taxed.
The Compliance and Risk Unit within Sars conducts the risk analysis of taxpayer information. If there is a mismatch between what the taxpayer has declared and what Sars has found, the case is referred for an audit.
If it is confirmed that the taxpayer has evaded tax, penalties are levied, interest is charged and additional tax of up to 200% of the evaded tax is charged. Depending on the circumstances, the case may then be handed to Sars' criminal investigation department which then engages the SA Police Service and the Specialised Tax Unit for criminal prosecution within the National Prosecuting Authority.
More than 10 000 - in fact, to be precise, 17 420 - such audits have been conducted by Sars over the past two years. The Prevention and Combating of Corrupt Activities Act of 2004 also provides for an investigation into a person who appears to own property disproportionate to their income. This is in addition to the stringent Financial Intelligence Centre Act, Fica, requirements that compel individuals to disclose sources of income when they make large financial transactions.
In light of the above, Cabinet is not considering lifestyle audits for Ministers, Deputy Ministers and senior public servants, as there are already appropriate measures in place.
Deputy Chairperson, hon members of this august House, each and every one of us has a duty as public representatives to ensure that members of the public and our constituencies are aware of the regulatory framework designed to deter corruption. However, and more importantly, it is necessary that, as public representatives, we inform the public about all the means available to them as citizens to bring to the attention of the authorities any information that they might have that will bring to book anybody involved in corrupt activities of any kind. The more our people know about these measures and the more we exercise oversight as Parliament, or the NCOP, the better we will be able to restore public confidence as mentioned by the hon member. Thank you.