BSA explains stance on boxers and tax issues
Boxing SA has clarified its position on boxers tax-related issues. This is informed by the announcement that the sport ministry is to introduce the phase three of the Covid-19 Relief Fund to sports persons who have lost income due to the lockdown restrictions.
Applicants will be required to be tax registered. Many boxers lost out from the two previous funds simply because they are not registered with SA Revenue Services (Sars).
Fingers were then pointed at BSA, but acting CEO Cindy Nkomo has clarified their position.
"It is the promoter and the boxer who must declare their tax complaint when a promoter does their returns on annual basis. BSA is the middleman whose duty is to make sure that process of one paying the other is done professionally and accordingly,” she stated.
She said they provided information such as informing boxers where exactly to go and register with Sars.
“The question is what is the role of the regulatory body and also that of a manager to a boxer. Until such time that we are honest about ourselves and our roles, we will always put the blame on the door of BSA,” she said.
“We are not an employer where you have an obligation to do certain things like taxes.”
Boxers pay managers 15 percent of their purse monies. Part of their duties include organising fights. But that ends up being done by trainers and promoters which then questions the honesty in taking that percentage when not giving the required service to the boxer.
For example, Evander Holyfield would have found himself owing millions of tax monies if his management was doing a great job. He is alleged to have earned US$200m from his 26 years in the ring.
Now, the 57-year-old former champ Holyfield lives in a two-bedroom apartment. He is said to earn around $100,000 per month through personal appearances, but that vast wealth vanished through reckless spending, bad business deals and even worse financial advice.
News.com.au reported that this legend was evicted from his 109-room Atlanta mansion, owing US$14m in mortgage repayments. It was sold at a knockdown price of US$7.5m to keep the banks off Holyfield’s back, the report added.
Vuyani Bungu, Takalani Ndlovu, Cassius Baloyi and Sam Malinga owed Sars thousands in unpaid tax in 2011 and they blamed BSA for not proving them with IRP5 forms. It is understood that they eventually struck a deal with Sars and settled their debts.