The Pretoria Excessive Courtroom this week ordered the liquidation of Grand Azania, an organization owned by Mind Shivambu, the brother of EFF deputy president Floyd Shivambu, over unpaid tax amounting to R11.5 million.
SA Income Providers (Sars) utilized for the provisional liquidation after conducting an audit in 2020. It relied on a forensic report which recommended Brian Shivambu, as the only director and shareholder of Grand Azania, instantly or not directly obtained gratuities of R16.1 million by VBS Financial institution, which was positioned in curatorship in 2018 after looting taxpayers and depositors of an estimated R2 billion.
Of the R16.1 million obtained from VBS Financial institution by Shivambu, R6.4 million was paid on to Grand Azania.
ALSO READ: VBS mortgage recipients ordered to pay again R100m, plus curiosity
Grand Azania is unable to pay its money owed
The Pretoria Excessive Courtroom judgment says Grand Azania is unable to pay its money owed, that Sars is a reputable creditor, and that the corporate ought to be provisionally wound up.
Sars received a judgment for R11.5 million in unpaid tax in opposition to Grand Azania in June 2021. The case this week was to find out whether or not or not the corporate may pay its money owed.
In its audit of the corporate, Sars established revenue of R828 101 and R7.6 million for the 2017 and 2018 tax years respectively.
The corporate monetary statements recorded a revenue earlier than tax of R389 384 for the 2017 tax interval, and a loss earlier than tax of R1.3 million for the 2018 tax interval.
Nevertheless, Sars discovered irregularities within the monetary statements.
“It was discovered that these bills weren’t paid from the taxpayers’ checking account, neither is there any mortgage accounts to point that these have been paid by a 3rd particular person, or any shareholders. Therefore none of those invoices supplied have been taken under consideration,” wrote Sars in its last audit letter in March 2021.
ALSO READ: VBS-accused fails to have banking legislation put aside, court docket orders his sequestration
Grand Azania give alternative to problem Sars
Grand Azania was given a possibility to problem the Sars assessments, as the corporate had not filed returns for the 2017 and 2018 tax years.
In its answering affidavit, the corporate claimed Sars’s estimated assessments have been unreasonable, contained materials procedural defects and have been considerably flawed.
The affidavit, dated 7 December 2021, mentioned the lacking tax returns and grounds of objection have been being drafted, however the firm’s supplementary affidavit was solely lodged on 24 January 2023, the day of the listening to.
Grand Azania’s authorized representatives claimed a methods error prevented them from submitting objections, and that the lacking tax returns had been filed – a yr after being promised.
ALSO READ: VBS whistleblower nonetheless fears for all times after 4 years in hiding
Sars responded that the corporate was out of time, after having missed two earlier extensions.
The order says Grand Azania had nonetheless not filed VAT returns for the related years.
“The enquiry into whether or not a respondent in liquidation proceedings is unable to pay its money owed is a factual one. Judgment has been taken in opposition to the respondent on 18 June 2021 and the quantity in respect of which the judgment was taken remains to be unpaid. The respondent is subsequently deemed to be unable to pay its money owed to Sars,” reads the judgment by Decide Ronel Tolmay.
“For my part Sars made out a case {that a} provisional liquidation order ought to be granted.”
ALSO READ: ANC officers linked to VBS scandal return as Limpopo premier reshuffles cupboard
VBS funds used for life-style bills
An investigation by Every day Maverick’s Scorpio claimed the Shivambu brothers used VBS cash to pay for homes and a automobile, and to profit relations.
Floyd Shivambu informed Parliament in October 2018 “with none worry of contradiction that the EFF and ourselves as members of Parliament by no means benefited something from the VBS Mutual Financial institution looting and the so-called heist that occurred there.”
The Scorpio investigation discovered in any other case, detailing R12.26 million in VBS funds that have been used to fund life-style bills, with one other R1.3 million allegedly funnelled to 2 EFF accounts and one other R5.2 million to Julius Malema’s Mahuna Investments.
This text initially appeared on Moneyweb and was republished with permission.Learn the unique article right here.
