Le Roux counts cost of case

2008-10-27 21:10

Cape Town - Former Springbok cricketer Garth le Roux has paid out just over R4m in legal fees on his tax fraud case, the Wynberg Regional Court heard on Monday.

And he may face a similar amount in tax bills.

The figures were contained in an affidavit by his attorney Henry Vorster, who took the stand as a witness in sentencing proceedings.

Le Roux and his accountant Deon van Heerden were convicted on August 15 on a string of tax fraud charges, related to undeclared commissions on properties Le Roux sold as an agent for the prestigious Fancourt golf estate at George.

Vorster said in his affidavit that Le Roux and his companies had so far incurred legal fees up to the day the judgment was delivered of over R4.1m.

This included the fees due to and payments made by his Johannesburg-based firm, Cape Town attorneys, George attorneys and counsel.

"It does not include any fees incurred since this court's judgment...which have been substantial," he said.

On Monday, Le Roux was represented by two counsels - Wim Trengove, who has been acting for him throughout the hearing, and sentencing expert Mike Hellens, who like Trengove is a Johannesburg senior counsel.

Vorster told magistrate Jackie Redelinghuys that Le Roux was contesting a civil claim by the SA Revenue Service in the tax court.

His sales company Marketime had already paid R650 000 to SARS in tax and interest on the "pay now, argue later" basis, in respect of the contested commissions.

The 200% additional tax penalty SARS was seeking, plus interest currently running at 15%, would bring the tax-related total to some R3.8m.

In addition, Le Roux had on his advice paid over personal tax of R122 000 on a commission "sacrificed" for a Fancourt Links membership.

Vorster said that if Le Roux and Van Heerden had been charged only with the counts on which they were eventually convicted, and not the ones on which they were discharged or found not guilty, their legal costs would have been a quarter of what they were.

"He could have saved R4.1m by conducting his tax affairs properly," responded prosecutor Bronwen Hendry.

A social worker hired by Le Roux and a correctional services official who compiled a report at the request of the state both said that the two men were good candidates for correctional supervision rather than jail.

- SAPA