King lawyer: Don't fight Sars
Fin24

King lawyer: Don't fight Sars

2013-08-30 22:46

Cape Town – Don’t try to fight Sars.

This is the conclusion drawn in the Dave King case after a legal battle spanning 13 years, according to his attorney Deborah Di Siena of Routledge Modise in Sandton.

The Scottish-born King settled on a payment of R706.7m to the South African Revenue Service (Sars) on Thursday. This is in respect of his personal income tax and the tax liability of Ben Nevis, a King trust company managed out of Guernsey.

The fraud charges against King were not pursued by the State and King accepted liability in respect of 41 lesser counts of contravening Section 75 of the Income Tax Act.

This includes the failure to disclose information and the failure to provide correct information about incomes earned over a number of years.

“The lesson to be learnt from this case is that one must rather engage with Sars from the beginning,” Di Siena told Fin24.

“Sars is actually fair and if you cooperate with them from the word go, they will be approachable and assist you to resolve the issue rather than spend millions on litigation.”

Sweeping powers

The new Tax Administration Act gives Sars enormous power apart from the unlimited resources at their disposal for litigation, according to Di Siena.

After a saga spanning 13 years King and his family can now continue to reside in South Africa (in Johannesburg) and he can conduct his business as chair of Micromega Holdings [JSE:MMG], an investment and acquisitions company, she said.

“It had taken months of negotiations and for the first time we managed to secure a settlement with Sars, the SA Reserve Bank (Sarb) and the National Prosecuting Authority (NPA) in order to finally bring an end to all the litigation,” she said.

“It took a great deal of work to nurture relationships between the parties and it ended up being very amicable.”

Negotiations, which were quite acrimonious at times in the past, failed repeatedly because of what she calls different sections of the NPA having divergent interests.

Although King was acquitted in September 2012 on a related criminal matter brought by the NPA, the second case, which was settled last week, was much more complicated and the docket ended up consisting of more than 300 000 pages.

- Fin24

Comments
  • Rustic - 2013-08-30 22:54

    Stuff SARS. Don't like King either, but stuff SARS who collect cash for this rotten regime. The enforcement goons who trip out on their power.

      Joseph Shange - 2013-08-31 11:33

      Shocking! Maybe Sars can cover the costs of the E-tolls now and forget about charging the people to use the roads.

      Pagel Trivia - 2013-09-01 11:24

      Unfortunately R700m won't cut it for the E-tolls and there are many other holes (umm pockets) to fill.

      Patrick Starkey - 2013-09-01 16:54

      Call me cynical but: Very strange line from a lawyer who gets paid by the very action of going to court. I wonder what the legal fees came to ? R700 million settlement on a SARS claim exceeding I believe in the region of 2 billion. I would go to court every time on those odds, not that I have much time for King either if I believe the media reporting on this case.

  • Nathan Lombard - 2013-08-30 23:58

    I agree mate. The whole argument of them "just doing their job" does not sit well with me. Taking tax payers money, and handing it over to such openly blatant criminals makes them no more than criminals themselves. Suing someone for unpaid taxes, what a cheek.

  • Bertus Pretorius - 2013-08-31 00:29

    Nr 1 is planning another home with this settlement received. That is if his other chommies don't beat him to the cookie jar.

  • Dobris Ntlhamu Ronaldo - 2013-08-31 01:00

    Bottom line : The Seshego boy waz nt co-operative. May God b de judge. Amen

  • Joe Smit - 2013-08-31 02:23

    It took you 13 years to figure this out, Deborah?

      Jaco de Beer - 2013-08-31 16:03

      And coining bigtime!

      Joe Smit - 2013-08-31 17:38

      Bit of a PR exercise. Spend 13 years trying not to pay, and when you finally capitulate, turn around and tell everyone else to pay. The King is an arrogant prick. Deport him.

  • Mphela Waga Matjie - 2013-08-31 03:51

    Guess who just got paid money to marry another wife and build anada house

      Mario Maro - 2013-08-31 05:15

      Mphela waga matjie,i hope im right

  • Roy Wadhams - 2013-08-31 06:31

    This crook like so many other rich people who can afford to pay SARS thought he could get away with it. Good for you SARS a pity though that people like this man get off to easy knowing that with all the money he made this "paltry" sum he must repay is nothing.

  • Oarabile Rodney M - 2013-08-31 06:35

    We heard you,time to pay now

  • Errol Wagner - 2013-08-31 08:17

    WAS PART OF THE DEAL TO BECOME PR FOR SARS?

  • James Smythe - 2013-08-31 08:32

    SARS is merely the 'enforcement' arm of the crooked Mafia-like government of SA! If King had not fought they would have got the Billions (not millions) they were demanding. As it is he has managed to fight off their huge demands, probably based on nothing at all except the regime's avarice.

  • Hartmut Gneiting - 2013-08-31 13:25

    That is the poorest comment fro a lawyer I have heard all my life. I wonder if she got paid for that by Sars. I am not alone when I state categorily that the Tax Administartion Bill is through and through unconstitutional, like many parts of the Income Tax Act and others. What worries me even more, how they pick their cases, e.g. Malema, King and others, while top figures carry on stealing openly. I mean from Sars' point of view they should tax such I-gained incomes! The TAB gives our corrupt state an easy way to silence outspoken citizen and the upcoming media bill makes "Picture Perfect"!

      Xenswim1 - 2013-09-01 08:09

      bet they were paid to fight the lost cause and they tried every trick in the book. They did not count on the those who cheated the tax man in the past helping to write tax laws that only favour rhe government and not the man in the street. In short the tax laws are like traffic fines you are guilty until YOU prove innocence. Government never has to provide you with the proof.

  • Sipho Shabalala - 2013-08-31 13:40

    He behaved like a Queen.

  • Malan Van Der Merwe - 2013-08-31 15:09

    Tipies prokureur. Nadat hy seker miljoene gemaak het om die saak te hanteer deur vir King te adviseer dat hy n saak het....en toe nie een gehad het nie. Laglag paar mijoen in die bank. Ek haat prokureurs

  • Bavesh Dinar - 2013-08-31 19:47

    SARS = The only effective and efficient department of the SA government. Unfortunately they have to pay over all the cash to a government that will waste it on nonsense. Maybe SARS should now also be put in charge of sorting out corruption, incompetence and wastage in other state departments...

      Stefan Erasmus - 2013-08-31 22:06

      Well said Bevesh Dinar....

  • Letsepem Mongalo - 2013-08-31 22:55

    Hey Mr King,let me remind you while still early before you spread the wrong gospel about Sars,first you don't pose any threat to any politician,or rather becoming a thorn to Zanc,and it is for this reasons that you were treated with kids gloves all the way throughout your woes with SARS will only hummer you if you were linked to what I have mentioned and just get it from the real enemies of politicians presently in government.

  • Shirley Bisschoff - 2013-09-01 00:12

    Fair? SARS isn't fair. I just had to pay capital gains tax on my one and only property as I had rented it out for a couple of years. Stuff them, very quick to take your money!

  • Andrew Grieveson - 2013-09-01 05:28

    IF U WORK FOR SARS READ THIS.SARS is not going away anytime soon so let's make them work to the taxpayers advantage. This they can do by annual comprehensive audits on taxpayers who earn taxpayers money ie government and provincial employees, especially at a senior level. They should also be required to subit a tax clearance certificate at the beginning of each financial year and pay should be witheld until this successfully submitted to payroll.All individuals charged with a crime should be audited as a matter of course. All application for credit through any bank should also require a tax clearance certificate . This will close the net even further.

  • Vernon Vice - 2013-09-01 08:40

    Wtf

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