Tobacco Scheme Busted: SARS Takes Down R155 Million Tax Dodger

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SARS has scored a major win against illicit tobacco trade, and it sends a clear message: dodge tax, and it’ll cost you. On 29 October 2025, the High Court in Gauteng granted a provisional sequestration order against Mr Roy Muleya, a key player in a dodgy tobacco import scheme. The judgment follows a long legal battle that started back in 2021, when SARS applied to have Mr Muleya declared insolvent for unpaid taxes.

What Did Muleya Do?

Mr Muleya was the sole director of a company that imported tobacco without any ties to licensed cigarette manufacturers (a major red flag!!). SARS issued a tax bill of R155 million under section 103 of the Customs and Excise Act. When he failed to pay, they took legal action under the Tax Administration Act.

What This Means

This case is part of a broader clampdown on tax crime, especially in the high-risk tobacco industry. As SARS Commissioner Edward Kieswetter put it:

“No matter how long it takes, SARS will not abdicate its responsibility to enforce the law.”

He proceeded to call on smokers to think twice before buying illegal cigarettes with a warning:

“In doing so, you’re supporting a criminal syndicate.”

Why This Matters

This case provides another reminder that SARS is serious about enforcement. When you working with clients you must:

• Make sure all tax obligations are up to date.

• Don’t wait until SARS knocks, voluntary compliance is always cheaper.

• Be extra cautious with sectors like tobacco, alcohol, and imports, where risk is higher.