By: Natasha Archary
It was never a matter of Phala Phala being tax compliant, but rather whether the $580 000 that was paid to the President was declared.
The South African Revenue Service (SARS) is obfuscating matters relating to Phala Phala, as the two issues are unrelated according to Sizwe Dhlomo.
This after SARS released a statement on Tuesday, 07 March stating that the President’s companies, Ntaba Nyoni Estate and Ntaba Nyoni Feedlot are compliant with all tax obligations up to date.
Siz was unsure why SARS would divulge this information as the question of Phala Phala’s tax compliance was never raised. Instead, the question was over the declaration or lack thereof of Sudanese businessman, Hazim Mustafa’s $580 000.
SARS however said that due to considerable public interest and concern over the President’s business affairs, with permission from Ramaphosa, the information about tax compliance was released.
“Based on this approach, the taxpayers in question have over the years been selected for audit by SARS well ahead of the start of media publications concerning the companies, and this has continued since then.
To date, audits have been concluded without any adverse tax findings, SARS wishes to confirm that the taxpayers are compliant with their tax obligations to date.”
Meanwhile, the Presidency has responded to the matter of declaration of the stolen money, saying it’s the responsibility of the buyer to declare the cash, not Ramaphosa.
Presidency spokesperson, Vincent Magwenya said, “The obligation to declare the money to SARS was for the buyer to fulfil on arrival and not for the management of the farm during receipt of payment.”
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