INLSA
Shauwn and Sbu Mpisane. Picture: Jacques Naude
Durban – The taxman is after Shauwn and S’bu Mpisane again and, in a secret high court application, has seized five properties held in a trust pending the outcome of an ongoing probe into their financial affairs, both personal and business.
The properties in the Mkhimpi Family Trust are said to be worth about R13.9 million and Sars wants to “preserve” them for 90 days while it finishes its audits into what it called the “Mpisane group of taxpayers”, the wealthy couple, the trust and their three close corporations, construction company Zikhulise Cleaning Maintenance and Transport, Ukhozi Civil Cleaning and Construction (in provisional liquidation) and Zikhulise Auto Restorers.
The Mpisanes, in their capacities as trustees, have until the end of this month to oppose the order granted “in chambers” by Durban High Court Judge Dhaya Pillay last week while Shauwn was standing trial in the Durban regional court on tax fraud charges.
In an affidavit before the court, Sars’ high court litigation unit specialist, Helen Templeton, said Sars held bonds over the properties – one in uMhlanga, one on the South Coast and three on the North Coast – as surety for a R17.7m tax debt.
This had been paid, but because of the couple’s history of “non-compliance and lack of co-operation”, it still wanted to retain control over the properties.
Templeton said that in spite of the criminal trial, the audits were ongoing.
The 2012 tax return for Zikhulise Cleaning was still outstanding, it still owed tax money as did Ukhozi – which had not submitted a tax return since 2008 – and Zikhulise Auto restorers, which had not yet submitted its VAT returns for this year.
The trust had never submitted any tax returns and Shauwn’s tax return for last year was still outstanding.
Templeton said the Mpisane group of taxpayers had, since 2008, not been forthcoming with information and documentation, claiming “the right not to incriminate” and “infringement of fair trial rights” as excuses.
“Zikhulise, when confronted with inconsistencies in its financial statements, produces a new set (four in one year). The blame for the inconsistencies is almost always placed on the bookkeepers or auditors,” Templeton said.
She alleged that in total, from 2006 to last year, Shauwn had paid R3.7m in personal tax and S’bu just less than R1.5m.
Over the same period, Zikhulise Cleaning had paid R32m income tax and R47.7m in VAT, Zikhulise Auto R157 000 in tax and R367 000 in VAT and Ukhozi R6.5m in tax and R2.7m in VAT.
Referring to a report from Trevor White, the court-appointed curator in a separate asset forfeiture application linked to another criminal matter pending against Shauwn, Templeton said the group of taxpayers (excluding Ukhozi) had assets valued at about R42m.
“A tax audit investigation often begins with a simple question, namely: how much money did the taxpayer earn in order to acquire the assets?
“It is, with respect, logical that there must have been an under-declaration of tax if the assets are compared with their income,” she said.
She said it appeared from White’s report that the Mpisanes had promised him the properties in trust as part of the R70m assets he was required to “restrain” and it appeared, from this, that they considered the trust “a structure they can control and manipulate as they please”.
Templeton said the Mpisanes complained that they were being made “political scapegoats” and the litigation, criminal investigations and audits were all “politically motivated”.
“Our response to the vendetta allegations is that all taxpayers have to submit returns and are compelled to provide certain financial information. They are being treated no differently and are not entitled to preferential treatment,” he said.
* Shauwn’s tax fraud case in the Durban regional court continues next week.
She is facing separate charges, in the Durban commercial crime court, of fraud, forgery and uttering relating to her alleged submission of false documentation to the Construction Industry Development Board to boost gradings resulting in her fraudulently scoring government work.
And, in a third matter, Shauwn is facing charges of attempting to tamper with evidence, and more tax charges.
tania.broughton@inl.co.za
The Mercury
