This, as it seeks to determine whether Watson hid funds from the taxman, and exactly how much he may owe in unpaid taxes.

News24 has learned that a tax inquiry is scheduled to get under way on Tuesday to get to the bottom of allegations before the Zondo commission of inquiry into state capture, and in media reports.

More than 20 witnesses are expected to appear before the inquiry, which is a process closed to the public as it relates to tax matters, which SARS is under legislative obligation to keep confidential.  

Advocate Piet Marais SC will head the inquiry, and he will have the power to subpoena witnesses to give evidence under oath.

Marais also headed a tax inquiry into EFF leader Julius Malema in 2012.

The Gauteng High Court in Pretoria granted SARS an order establishing the inquiry on March 29, but the order was sealed, prohibiting access to the documents.

The inquiry will mainly focus on establishing the facts surrounding allegations that Watson and the companies in the Bosasa stable failed to comply with tax obligations and sought to hide assets from the tax man.

Watson, it emerged, paid senior staff cash on a monthly basis, and allegedly instructed his close associates to structure deals to hide the truth from SARS.

These payments were described by former Bosasa chief operations officer Angelo Agrizzi during testimony before the commission as being an incentive for staff members to keep quiet about alleged bribery practices that continued for years.

Agrizzi estimated that tens of millions of rand were paid in bribes to, mainly, the department of correctional services and social development officials in exchange for lucrative multibillion-rand tenders.

He spent more than 10 days on the witness stand, delivering bombshell testimony of alleged illegality involving corrupt tenders, bribes and how the company had allegedly bribed its way after being in hot water with the National Prosecuting Authority.

Between 2006 to date, Bosasa scored government contracts worth an estimated R12bn, National Treasury data shows.

In 2007, the Special Investigating Unit (SIU) finalised a report that found bribes were paid to former correctional services commissioner Linda Mti and former correctional services chief financial officer Patrick Gillingham in exchange for fencing tenders worth hundreds of millions of rand.

News24