South African billionaire nailed by SARS

The South African Revenue Service (SARS) is targeting wealthy South Africans, with billionaire Christo Wiese being dealt a massive blow in court.

Wiese and three other defendants have lost a legal fight at the Supreme Court of Appeal, and the taxman could potentially receive R216 million after additional litigation.

Wiese is one of South Africa’s six billionaires, with a net worth of $1.4 billion (R25 billion). His wealth is mainly tied to a significant shareholding in Shoprite.

SARS previously approached the High Court for an order declaring four defendants are jointly and severally liable to pay SARS R216 million by section 183 of the Tax Administration Act, No. 28 of 2011 (TAA):

“Liability of person assisting in dissipation of assets.—If a person knowingly assists in dissipating a taxpayer’s assets in order to obstruct the collection of a tax debt of the taxpayer, the person is jointly and severally liable with the taxpayer for the tax debt to the extent that the person’s assistance reduces the assets available to pay the taxpayer’s tax debt.”

The court order was sought by SARS on the basis that the defendants knowingly assisted a taxpayer, Energy Africa (Pty) Ltd, in dissipating its sole asset (a loan claim) on 19 April 2013 to its holding company.

Source: REUTER