In the first ruling of its kind, the Durban High Court has been asked to decide if a confidentiality agreement between the South African Revenue Service (SARS) and taxpayers prevents officials from giving evidence in prosecutions not instituted by them.

Mr Justice Hilary Squires, presiding at the trial of Durban businessman Schabir Shaik, was asked to make the ruling after the State indicated that it wished to call a Durban tax official, Rob Reid, as a witness.

Shaik faces a charge of tax evasion as an alternative to the fraud charge against him. He has also been charged with two counts of corruption. He has pleaded not guilty to all the charges against him.

To prove the tax evasion charge the State would need to call Reid and hand in Shaik's tax returns. SARS went to court yesterday to ask whether it needs a court order compelling it to do so.

"The commissioner is not taking sides on whether the evidence should be given or not," said advocate Peter Olson SC, for SARS.

Advocate Guido Penzhorn SC, for the State, said that they believed SARS can hand over documents and give evidence in the course of their duties.

Shaik is opposing the handing in of the evidence. Judge Squires has reserved judgment on the matter.

The court also heard yesterday that Shaik had bought the furniture in an apartment he had rented for Deputy President Jacob Zuma, but took the items away without paying for them.

The State alleges that the rent for the apartment in Mallington Place, Durban, was one of the payments Shaik made in furtherance of what has been alleged to be a "general corrupt relationship" between them.

The landlord, Tracy O'Brien, said she had rented the apartment and then sublet it. Shaik answered an advertisement in this regard in August 1996.

Shaik's counsel, Francois van Zyl SC, said his client would say that Zuma had occupied another flat in the block.

O'Brien said the flat was first used by the Nkobi group of companies' financial director, Colin Isaacs. Then she found out that the flat was occupied by Zuma..

"Every month the rent was late. It was eventually always paid. Some of the cheques bounced. But it was always late," O'Brien explained.

After a while she terminated the sublease with Shaik. She then decided to sell the furniture in the flat. Shaik told her that he would buy the furniture for "Zuma's house in Zululand".

O'Brien said the furniture was removed without her knowledge, and never paid for.

Van Zyl has indicated that Shaik will say that Zuma moved into the flat after his house was burnt down and the intelligence services believed that he was in danger.

With acknowledgements to Estelle Ellis and the Cape Argus.