A subsidiary of National First Division sponsor, GladAfrica Group, faces the prospect of having its assets attached for owing almost R100m to the SA Revenue Service.
The tax collector announced in a media statement on Tuesday, after it obtained a civil judgment and writ of execution against GladAfrica Management Services, that the company submitted pay-as-you-earn and value added tax returns without making payment.
"The failure to make the payments resulted in a debt of R88-million and was escalated to the Sars PAYE rapid response team which had a series of engagements with the taxpayer between May and August of 2021," said Sars in the statement.
"However, a writ of execution was issued today 10 August, which will be followed by the attachment of assets by the sheriff."
Sars commissioner Edward Kieswetter said there was a growing trend in which companies filed tax returns without making a corresponding payment.
He added that one of the organisation’s strategic objectives was to make it hard and costly for taxpayers who do not comply with their tax obligations, no matter who the taxpayer was.
“Sars is becoming increasingly aware of the tendency by companies to submit returns without making the corresponding payments. Such non-compliance will not be tolerated as it is a serious threat to the revenue collection mandate of Sars.
“Companies and their directors must note that Sars will take all action legally possible to ensure compliance and ensure that VAT and PAYE payments are made.
"As per third party agreement, PAYE is collected from employees on behalf of Sars and is not for the benefit of the company. To then utilise collected tax for other purposes than pay it over to Sars, is a criminal offence,” Kieswetter said.
GladAfrica had not responded to SowetanLIVE's questions by the time of publication.
Sars obtains judgment against GladAfrica to attach assets for R88m taxes owed
Image: GladAfrica
A subsidiary of National First Division sponsor, GladAfrica Group, faces the prospect of having its assets attached for owing almost R100m to the SA Revenue Service.
The tax collector announced in a media statement on Tuesday, after it obtained a civil judgment and writ of execution against GladAfrica Management Services, that the company submitted pay-as-you-earn and value added tax returns without making payment.
"The failure to make the payments resulted in a debt of R88-million and was escalated to the Sars PAYE rapid response team which had a series of engagements with the taxpayer between May and August of 2021," said Sars in the statement.
"However, a writ of execution was issued today 10 August, which will be followed by the attachment of assets by the sheriff."
Sars commissioner Edward Kieswetter said there was a growing trend in which companies filed tax returns without making a corresponding payment.
He added that one of the organisation’s strategic objectives was to make it hard and costly for taxpayers who do not comply with their tax obligations, no matter who the taxpayer was.
“Sars is becoming increasingly aware of the tendency by companies to submit returns without making the corresponding payments. Such non-compliance will not be tolerated as it is a serious threat to the revenue collection mandate of Sars.
“Companies and their directors must note that Sars will take all action legally possible to ensure compliance and ensure that VAT and PAYE payments are made.
"As per third party agreement, PAYE is collected from employees on behalf of Sars and is not for the benefit of the company. To then utilise collected tax for other purposes than pay it over to Sars, is a criminal offence,” Kieswetter said.
GladAfrica had not responded to SowetanLIVE's questions by the time of publication.
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