Malema's partner drops tax fight

2012-08-08 13:03
Lesiba Gwangwa (Felix Dlangamandla, Beeld)

Lesiba Gwangwa (Felix Dlangamandla, Beeld)

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Pretoria - Lesiba Gwangwa, a business partner of expelled ANCYL president Julius Malema, has withdrawn two applications in the North Gauteng High Court to set aside an inquiry into his tax affairs, it was reported on Wednesday.

Gwangwa was ordered by the court on Tuesday to make himself available for questioning at the inquiry, reported the City Press.

The newspaper reported that Gwangwa had approached the court to set aside an inquiry into 18 of his companies by the SA Revenue Service (Sars).

Judge Ferdi Preller told the court that he was surprised that Gwangwa had settled the matter out of court and had agreed to testify at the inquiry.

"I didn’t think this matter was capable of being settled. The order is made that he will testify and appear on Tuesday..." Preller was quoted as saying.

Despite resigning as director of some of the companies, Malema still benefited through the Ratanang Family Trust's shareholding company On-Point Engineers, City Press reported.

The inquiry is into 15 suspected breaches of the VAT Act and the Income Tax Act by Gwangwa and his companies since 2005, The Citizen reported.

However, he had argued that it was unconstitutional and had said he wanted it set aside.

Sars attorney Nic Maritz told City Press that Gwangwa had not given a reason for withdrawing his application.

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