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King: SARS terrorises taxpayers

Johannesburg - SA Revenue Services (SARS) public enemy number one, Dave King, didn't mince his words as he decided to tell his story to the South African media at a press briefing in Johannesburg on Tuesday morning.

King said: "The spin-doctoring from SARS has gone beyond an acceptable level and I'd now like to use the press to tell my side of the story."

The media event was the first time that King had actively engaged the press in his eight-year running battle with SARS which has cost both sides collectively about R400m in legal expenses. According to King, SARS has incurred approximately R245m in legal fees as at June 2008.

Revenue officials have tried various tacks to pin down nearly R2.3bn worth of tax claims against King and his offshore trust, operating under the name of Ben Nevis.

These include arrrests, freezing of assets and a number of failed settlement negotiations.

King pulled no punches and made some choice comments about the role of transformation in the judiciary, the lack of skills within SARS and the role that SARS commissioner Pravin Gordhan has played in this high-profile tax case.

Hero or villain?

According to King, Gordhan's heavy-handed approach to tax collection is a problem.

In some circles, Gordhan has been credited with creating a highly efficient revenue collection service and King was prepared to credit him with changing the tax culture in South Africa.

King said: "It had to be done and he did it well."

But the SARS directive of "pay now and argue later" is something that does not sit well with King.

He said: "SARS has had eight years of terrorising taxpayers and changing the culture of paying tax in South Africa; unfortunately destroying people's lives is not a tax collection strategy."

Mike Addinall, a former Hi-Fi Corporation employee who was jailed for five years following a battle with SARS, was at the meeting. He congratulated King for finally being able to stand up and take the fight to Gordhan and his team.

There were mixed feelings from journalists leaving the meeting. Some felt King was pushing for sympathy, but others, who have been on the receiving end of harsh justice from SARS, were pleased that a "street fighter" like King had the financial and legal resources to take the fight to those at the top of the tax castle.

- Fin24.com

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