The Guptas are running a multimillion-rand gold shop in Dubai.
In December 2015 the family made R50-million in gold sales in three days in Dubai's tax-free zone and gold market, the gold souk. This amounts to more than a quarter of what Gupta-owned Shiva uranium mine made the entire year in 2015 as it reported sales of just over R165-million.
E-mails reveal that the Guptas are involved in management, operational and decision-making at Emperesse Bullion LLC and Manish Jewellers but are not registered as directors or shareholders. That would require them to pay tax as South African residents running a foreign-based company.
Documents show that Emperesse Bullion LLC and Manish Jewellers head of finance Anto Joseph reported daily sales to Atul Gupta in December 2015. He also asked Atul to approve credit of about R17.8-million to Malabar Gold, one of the world's top jewellers.
Suspicious box
It is unclear where the gold came from. But on April 7 2016, a Gupta jet was preparing to depart from Fireblade Aviation's terminal at OR Tambo International when scanners picked up a box containing what looked like stones. When airport security asked to see the contents, a Gupta security man took the bag. The Guptas later claimed these were "jars with different kinds of nuts and wheat".
In December 2015 alone the Gupta family scored R50-million in gold sales in just three days through Emperesse Bullion LLC and Manish Jewellers in Dubai’s tax-free zone and gold market, the gold souk.
— I wanna be a bullionaire
Dubai has relaxed controls over the importation of raw gold.
In October 2014, the Gupta brothers, through their company Sahara Holdings, asked KPMG for advice on income tax implications for investments in Dubai.
KPMG's MD of tax and legal, Muhammad Saloojee, advised them to choose between setting up a "controlled foreign company which would be managed from South Africa and have tax implications, and a foreign-based enterprise that would have no tax implications in the country".
Saloojee warned that a foreign-based company could attract scrutiny as it might suggest the family weretrying to evade residence-based taxation in South Africa.
Liable for tax
According to South African tax laws, residents are liable for tax wherever in the world they may derive income.
"Revenue authorities across the globe are scrutinising arrangements established in low-tax or no-tax jurisdictions. As Dubai is a no-tax zone, this makes it that much more imperative to ensure that the structure will withstand scrutiny," said Saloojee.
In May 2015 Saloojee flew to Dubai and stayed at the Oberoi hotel at the expense of Sahara Holdings to complete the assignment.
KPMG said it was all by the book.
Steven Louw, executive partner of risk and finance, said: "KPMG ... did not provide advice to evade tax. At all times, advice was provided within the parameters of the law. KPMG South Africa had not performed any audit or tax-compliance services to any of the Dubai entities.
"All entities are required to comply with anti-money-laundering rules and various parties have reporting obligations once they are aware of any money-laundering activities. At the time, KPMG was not aware of any money-laundering activities, which are now being alleged in the press."
The Guptas did not respond to questions.
