Malema hits back at Sars

2015-06-02 18:36
Julius Malema in talks with his lawyers in court. (Genevieve Quintal, News24)

Julius Malema in talks with his lawyers in court. (Genevieve Quintal, News24)

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Johannesburg - EFF leader Julius Malema on Tuesday lashed out at the SA Revenue Service (Sars), accusing it of implying he withdrew his application for declaratory and interdictory relief because he had "lost faith" in it.

This came after the Sars withdrew its sequestration application against the EFF leader on Monday.

In a statement earlier on Tuesday, Sars said part of its decision to withdraw was because Malema withdrew his application for the declaratory and interdictory relief.

This meant that Sars was not bound by the previous compromise agreement and could take steps to recover outstanding taxes.

"I did not approach Sars to settle and I did not withdraw my application because I lost faith in it, as is suggested in the media statement," Malema said in response.

He said he had instructed his attorney to write an urgent letter to Sars asking that it withdraw its media statement.

"Should Sars refuse to do so I will urgently approach the high court for an order that the compromise agreement is valid and that I do not owe any debt to Sars relating to the 2005 to 2011 tax periods."

'I paid each and every cent'

Malema explained that he entered into an agreement with Sars in May last year concerning those tax years. 

"I paid each and every cent of the compromised debt. The effect of this was that I owed nothing relating to the 2005 to 2011 tax years and that Sars could not sequestrate my estate."

A trust, called the Julius Sello Malema Trust, had been set up to help him pay his tax debt.

He said that after he paid the whole debt, Sars decided to unilaterally withdraw from the agreement, keep the money he had paid and hold him liable for the original assessments.

Sars, in its statement, said: "It is important to note that the Court made no finding that Sars is bound by the compromise agreement with Mr Malema that it entered into in May 2014."

No concession has been made by Sars with respect to the recovery of the current and future outstanding taxes, it added.

It would continue to "take the necessary steps available to it in terms of the Tax Administration Act to recover all tax debts that might be due'' without compromising its independence or impartiality", the statement read.

Malema said it was regrettable that Sars was trying to undo the events of Monday.

"The essential fact that served before the court in the sequestration application was whether the compromise agreement is valid and binding or not. 

"Purely for the sake of good order I brought a counter application against Sars that the compromise is valid. [It] was dependent on the sequestration application and if there were no sequestration application, I would not have brought the counter application,"  he said.

Read more on:    sars  |  julius malema  |  johannesburg  |  tax

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