Waiting for tax justice … spare a thought for Sars
The court judgment in the case of Joseph Nyalunga versus Sars (South African Revenue Service) had to consider whether being in jail is a good enough excuse for someone not to have fulfilled their tax obligations, such as objecting to an assessment or furnishing Sars with information.
On the other hand, it raises the problem that those with access to funds, even criminals, can delay justice for a very long time.
The background to Nyalunga versus Sars started in 2011, when Nyalunga, a former officer in the South African Police Service, was arrested on the N4 highway near Middelburg.
The former police officer was driving his Range Rover Sport which contained a cash amount of R3.3 million.
Nyalunga was charged with money laundering and released on bail. When the police searched his home, a further cash amount of R5.8 million was found.
Read: Sars legal dispute time lag must be shortened
In 2013, while Nyalunga was incarcerated, Sars sent him an ‘intention to audit letter’ regarding “possible under-declaration of taxable income”. Later that year, Sars issued an ‘audit findings letter’. Nyalunga was provided with the opportunity to provide further information. Nyalunga did not respond, and Sars issued the ‘finalisation of audit letter’.
Nyalunga responded to that, informing Sars that he was still in prison and couldn’t provide any documents.
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