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The SA Revenue Service has secured a preservation order against the Gold Leaf Tobacco Corporation and its directors, Simon Rudland and Ebrahim Adamjee.
The order, which was granted by the North Gauteng High Court, blocks the tobacco producer and its directors from selling any of their assets while the tax agency continues with a probe into tax evasion.
"The conduct of non-compliant taxpayers is depriving government of legitimate resources to the prejudice of both the state and the South African public," said SARS Commissioner Edward Kieswetter in a statement.
"In aggressively addressing this scourge, SARS will continue to pursue its mandate without fear, favour or prejudice."
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According to the Daily Maverick, SARS investigators told the court they had evidence that Gold Leaf was involved in money laundering and may owe up to R3 billion in undeclared income tax and VAT, and other taxes.
The publication reported that SARS asked the court to freeze Rudland and Adamjee’s assets as well, as Gold Leaf's assets alone did not cover its possible debt to SARS. The two directors denied any wrongdoing.
Yusuf Abramjee, the founder Tax Justice SA, said the preservation order was a "huge breakthrough in the battle against the illicit cigarette trade".
"For over a decade, GLTC have been the prime suspects as South Africa’s illegal cigarette trade has grown into a national menace of devastating proportions," he said.
*This story has been corrected to reflect that the case is one of tax evasion, not avoidance.
