Labour Court reinstates suspended SARS deputy commissioner.

Labour Court Judge Annelie Basson in Johannesburg yesterday overturned the South African Revenue Services(SAR), deputy commissioner Ivan Pillay’s suspension, ordering SARS to reinstate Pillay with immediate effect.

Basson said “The suspension of the applicant was unlawful. The prejudice that [Pillay] is suffering resulting from his public suspension causes significant prejudice to him as a result of the infringement of his rights.” She also said that Pillay’s suspension was a breach of his employment contract.

Judge Basson said SARS conceded that Mr Pillay was not given written notice of its intention to suspend him. SARS had not shown whether the suspension was necessary to prevent Mr Pillay from interfering with witnesses or with pending investigations, as it had alleged.

On the urgency of the matter, she said the court could not ignore the consequences to Mr Pillay and the public interest as “various SARS media statements created the innuendo that the applicant is guilty of misconduct and unlawful behaviour”.

On December 5, Sars commissioner Tom Moyane announced the suspension of Pillay and strategic planning and risk group executive Peter Richer following an investigation into an alleged “rogue” unit operating within the tax services. Peter Richer’s suspension was lifted on Wednesday after a settlement with SARS. Pillay this week challenged his suspension in court.

Sars was also ordered to pay the legal fee for one of Pillay’s lawyers.