SARS paid R89m VAT refund meant for Guptas to third party - report | Fin24

SARS paid R89m VAT refund meant for Guptas to third party - report

Apr 25 2018 18:09

The South African Revenue Service reportedly made another value-added tax repayment destined for a Gupta-linked company via a third party. 

TimesLIVE reported on Wednesday morning that the tax agency paid R89m to In House Wage. The money was meant for Optimum Coal Mine, which is under business rescue.  

This is the second time this year that SARS has allegedly made a VAT repayment to a Gupta-linked company via a third party. 

In mid-March it was revealed that R70m in VAT refunds to Oakbay Investments was routed via a third party named Terbium Financial Services.

It was later revealed that the pay agent company which received the Gupta VAT payout was not registered with the Payment Association of South Africa, which means the transaction may have broken financial laws.

TimesLIVE reported that the R89m payment destined for Optimum was caught by business rescue practitioners, who successfully approached the courts to have the funds frozen. 

In an emailed response to Fin24 on Wednesday, SARS spokesperson Sicelo Mkosi said secrecy provisions in the Tax Administration Act preclude SARS from commenting on the affairs of specific taxpayers. 

“However, it should be noted that this and other earlier related matters are subject to a review after which appropriate action will be taken where necessary.”

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optimum coal mine  |  sars  |  gupta family  |  tax  |  vat


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