DA asks SARS to look into Zuma’s tax compliance |
Publication |
Business Day |
Date | 2011-12-12 |
Reporter |
Linda Ensor |
Web Link | www.bday.co.za |
DA finance spokesman Tim Harris. Picture:
FINANCIAL MAIL
THE Democratic Alliance (DA) has asked South
African Revenue Service (SARS) commissioner
Oupa Magashula to investigate whether
President Jacob Zuma and his donors paid
taxes on the millions of rand apparently
more than R7m that was allegedly
transferred to him between 1995 and 2006.
According to media reports, the payments
were made to Mr Zuma by his convicted
financial adviser, Schabir Shaik, (R4m),
former president Nelson Mandela (R1m),
businessman Jürgen Kögl (R1m), and sundry
amounts of about R1m by Mr Zuma’s nephew,
Khulubuse Zuma, his attorney Julie Mahomed
and Durban businessman Vivian Reddy.
DA finance spokesman Tim Harris said on
Tuesday he had filled in the necessary forms
to report Mr Zuma for suspected
noncompliance with the Income Tax Act.
"The DA believes that this matter should be
investigated further and that all South
Africans, including the president, should be
duty bound by the laws of the land," Mr
Harris said.
His request for an inquiry came in the wake
of an exposé by the Mail & Guardian
newspaper of a draft forensic report that
accounting firm KPMG compiled for use in the
subsequently abandoned trial of Mr Zuma on
charges of corruption.
The report tracked the payments allegedly
made either directly to the president or to
his creditors and banks to settle his debts.
Presidential spokesman Mac Maharaj said he
had no comment to make on DA statements to
the public, but SARS spokesman Adrian Lackay
confirmed that the tax authority had
received correspondence from the DA that
would be dealt with "in the normal course of
SARS business, as would be the case with any
other taxpayer, complaint or allegation
reported to SARS".
He stressed that SARS was bound by the
confidentiality provisions of the law.
"Taxpayer confidentiality extends to whether
or not a taxpayer is under investigation.
Taxpayer confidentiality ends only when a
matter is formally brought before a court of
law, other than a tax court," Mr Lackay
said.
Mr Harris explained that in terms of the
Income Tax Act many of the payments made to
Mr Zuma might be classified as donations and
therefore possibly subject to donations tax.
"According to section 60(1) of the act, if a
donor fails to pay donations tax within a
prescribed three-month period, both the
donor and the donee will be jointly liable
to pay the outstanding amount of donations
tax," he said.
"This, of course, assumes President Zuma
accepted the donations without rendering any
services in exchange. If this was not the
case, then the transfers could instead form
part of the president’s ‘gross income’ and
be subject to normal income tax."
With acknowledgement to Linda Ensor and Business Day.
So the esteemed Project Bumiputera Team
could not incarcerate this scoundrel for
corruption and racketeering over a period of
14 years.
Now we are going to rely on Project Oupa -
Al Capone style.
But a rose by another name is still a rose.
I looking forward to a sweet smelling 2013.
Fortunately I do not need to pay any
donations tax on the 60 kiloWatthours per
each prizes for my numerous quizzes.
That's because it seems no one is willing or
able to enter them.
While on the subject of Al Capone and income
tax, how about a little SARA investigation
into Scoundrel 1's spokesman, Scoundrel 2,
Mac The Lying Snout?
*
Quiz
Who signed the bribery agreement that
sent 1,2 million French Francs from a
wholly-owned subsidiary of Thomson-CSF into
a Swiss bank account of the company owned by
Mrs Zarina Maharaj and registered in the
British Virgin Islands?