Mpisane didn't evade tax - defence

2013-05-08 21:03
Shauwn and S'bu Mpisane (Picture: City Press)

Shauwn and S'bu Mpisane (Picture: City Press)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Durban - Businesswoman Shauwn Mpisane had no intention of evading payment of tax, the Durban Regional Court heard on Wednesday.

During cross-examination, Rafik Bhana, SC, for Mpisane, said if the SA Revenue Service had the opinion that Mpisane had plans to evade tax, they would not have reduced her additional tax penalty from 200% to 100%.

State witness Waheeda Osman, who is also a tax auditor at Sars, agreed with Bhana.

Mpisane is accused of inflating invoices by more than R5m in an attempt to cut her tax bill.

She is also accused of violating the Close Corporations Act by remaining the sole member of Zikhulise Cleaning, Maintenance, and Transport CC when she had a previous fraud conviction.

She has pleaded not guilty.

In 2008, Osman motivated a 200% penalty on Mpisane's additional tax.

The matter was reviewed by the Additional Tax Committee (ATC) who decided that Mpisane should pay 100% additional tax.

Bhana told the court Osman lacked objectivity as she failed to attach the weight of the Voluntary Disclosure Process and attempts by Mpisane to regularise her tax affairs.

He said the ATC did not agree with Osman's penalty of 200% additional tax.

"If Sars views there was an intention to evade tax, they cannot reduce additional tax," Bhana said.

He said as the matter progressed through the Sars processes her additional tax was reduced to zero percent.

Osman said a criminal case was opened against Mpisane because she presented fictitious invoices in 2010.

Bhana said Sars was aware of Mpisane's fictitious invoices after the Alternative Dispute Resolution process.

He said Osman's knowledge of Mpisane's 2005 fraud conviction tainted her approach to the matter, which influenced her decision of a 200% penalty on additional tax.

Osman disagreed, saying she did not know of Mpisane's conviction when she began her audit.

Bhana asked Osman why she had done Vat audits on draft financial statements on Mpisane's company in 2008.

She said it was not her mandate to follow up on a taxpayer and ask for financial statements.

Bhana said the draft financial statements were not signed off, because it was possible there could be changes to the final financials.

The trial continues.

Read more on:    sars  |  shauwn mpisane  |  durban

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Financial advisors – Do you need one and should you get one?

The good, the bad, and everything else you need to know when considering hiring a financial advisor.


Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.