The South African Revenue Service (SARS) yesterday abruptly withdrew its application for a final sequestration order against EFF leader Julius Malema.
SARS counsel advocate Nic Maritz SC was expected to continue arguing the case for SARS at 4pm after an adjournment, but instead came back to inform Pretoria High Court Judge Gregory Wright the revenue service had advised him to withdraw the application.
The decision was welcomed by Malema, who relayed the development to supporters gathered in the street outside the court.
However, SARS said it will still insist that Malema pays his tax bill.
Maritz earlier yesterday had faced a barrage of questions from Wright as to why SARS was seeking a final sequestration order.
Malema was placed under provisional sequestration in February last year because of a tax debt of R18-million.
In May last year, Malema signed a compromise offer with SARS in which he would pay R7.2-million instead of the R18-million he owed for the period 2005 to 2011.
Wright told Maritz that the revenue service was not allowed to enter into the compromise agreement if it believed Malema was hiding some of his assets.
“The May 26 2014 compromise must be an admission by SARS that it has maximised its recoverability from Malema,” Wright said.
Maritz denied this and said SARS had decided it was appropriate to compromise.
Wright persisted, saying that when the compromise offer was tabled, Malema listed the funds held by curators, donations and a salary as his three sources of income.
“What evidence is there that between May 26 and today, Mr Malema has other assets?”
Maritz admitted there was no evidence before court and said the sequestration order would allow SARS to investigate other assets.
In its application, SARS said Malema now owed it R32.9-million.
It said he had failed to keep his tax affairs up to date as obliged in terms of the compromise agreement.
In addition to the original debt of R18-million, Malema now also owed amounts in terms of assessments in 2011 and 2012, SARS said.
SARS spokesman Luther Lebelo said the revenue service would still pursue payment from Malema for the money owed.
“We are not pursuing collection through that process . We will use the normal debt collection means,” the spokesman said. — mabuzae@timesmedia.co.za
SARS drops Malema tax debt action
SARS counsel advocate Nic Maritz SC was expected to continue arguing the case for SARS at 4pm after an adjournment, but instead came back to inform Pretoria High Court Judge Gregory Wright the revenue service had advised him to withdraw the application.
The decision was welcomed by Malema, who relayed the development to supporters gathered in the street outside the court.
However, SARS said it will still insist that Malema pays his tax bill.
Maritz earlier yesterday had faced a barrage of questions from Wright as to why SARS was seeking a final sequestration order.
Malema was placed under provisional sequestration in February last year because of a tax debt of R18-million.
In May last year, Malema signed a compromise offer with SARS in which he would pay R7.2-million instead of the R18-million he owed for the period 2005 to 2011.
Wright told Maritz that the revenue service was not allowed to enter into the compromise agreement if it believed Malema was hiding some of his assets.
“The May 26 2014 compromise must be an admission by SARS that it has maximised its recoverability from Malema,” Wright said.
Maritz denied this and said SARS had decided it was appropriate to compromise.
Wright persisted, saying that when the compromise offer was tabled, Malema listed the funds held by curators, donations and a salary as his three sources of income.
“What evidence is there that between May 26 and today, Mr Malema has other assets?”
Maritz admitted there was no evidence before court and said the sequestration order would allow SARS to investigate other assets.
In its application, SARS said Malema now owed it R32.9-million.
It said he had failed to keep his tax affairs up to date as obliged in terms of the compromise agreement.
In addition to the original debt of R18-million, Malema now also owed amounts in terms of assessments in 2011 and 2012, SARS said.
SARS spokesman Luther Lebelo said the revenue service would still pursue payment from Malema for the money owed.
“We are not pursuing collection through that process . We will use the normal debt collection means,” the spokesman said. — mabuzae@timesmedia.co.za
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