South Africa: Braai Packs and Bribes While Companies Owed SARS R500 Million in Taxes

analysis

While Bosasa was dolling out braai packs and millions in cash bribes to politically-connected ANC cronies, the late Gavin Watson's companies dodged paying round R500m in taxes. Now SARS wants Bosasa to render unto Caesar.

The information regarding Bosasa's tax burden has come to light in an affidavit filed by SARS in the late afternoon of 4 December 2019 in the South Gauteng High Court. The revenue service has asked to be joined as a respondent in Bosasa's urgent application to enter into business rescue.

Bosasa had attempted to derail the auction on 3 and 4 December of its remaining assets worth millions, by applying for five of its companies - African Global Operations Ltd, Bosasa Properties, Global Technology Systems, Bosasa Youth Development Centres and Black Rox Security Intelligence Services to be placed under business rescue.

On 4 December, Sarita Lubbe, of SARS Specialist Investigations, launched an urgent application, on behalf of the commissioner, declaring that the application for business rescue by Bosasa was "defective as SARS clearly has a right to participate in proceedings".

On learning that Bosasa sought to urgently apply for business rescue with the court on 4 December, SARS directed a letter to Bosasa attorneys advising...

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