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Media Release Tswaing Municipality and construction company assets attached over R40m tax bills

Media Release Tswaing Municipality and construction company assets attached over R40m tax bills

Tshwane, 27 August 2021 – Assets of the Tswaing local municipality in the North West province have been attached by the sheriff, as a result of a tax debt of R30-million owed to the South African Revenue Service (SARS).

The local municipality, which covers the towns of Delareyville, Sanieshof and Ottosdal, submitted returns to SARS but failed to make any payments for Pay-As-You-Earn (PAYE), the Skills Development Levy (SDL) and the Unemployment Insurance Fund (UIF).

The non-payment has resulted in the tax debt of R30-million.

Private companies, government departments, as well as other employers are required by law to deduct these taxes from employees and then pay these monies over to SARS.

In another matter, the sheriff attached the assets of a construction company Independant Minds 107 (PTY) Ltd after it submitted PAYE, UIF and SDL returns without making payment. The outstanding debt owed by the company is to R 10-million

SARS Commissioner Edward Kieswetter “expressed his deep concern at such wilful non-compliance. SARS is left with no alternative to but invoke the law to deal with such non-compliant taxpayers”.

These steps dovetail with organisation’s strategic objectives, which is to provide clarity and certainty to taxpayers so that they can comply with their legal obligation, yet equally to make it hard and costly for taxpayers who do not comply with their obligations.

“SARS is fully committed to uprooting the culture that has taken hold wherein the leadership of companies file and submit returns yet withhold the payment. This type of behaviour deprives the fiscus of what is due and is unfair on other compliant taxpayers.”

He concluded that “SARS has turned its attention to this practice, and all those who indulge in this behaviour can be assured we will not look away, regardless of the company involved. While SARS remains open to engagement over payment arrangements, it will act without fear, favour or prejudice against recalcitrant taxpayers. This is a warning to all who have chosen to embark on this path of non-compliance.” Mr Kieswetter said.

For more information, contact [email protected]

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