“We are confident the Sars claim has no merit. We have filed a notice of intention to defend the matter, which we will do rigorously. It is unjust for banks to be held liable to Sars for taxes their clients have failed to pay,” said Sasfin CEO Michael Sassoon.
“Of importance is that this is not a tax claim, but a claim for damages and has nothing to do with Sasfin’s own tax affairs. The claim, which we emphatically reject, will involve a protracted trial action, and the matter is only likely to conclude in several years’ time,” Sassoon said.
TimesLIVE has reached out to Sars for comment.
Earlier on Tuesday, President Cyril Ramaphosa extended the term of office of the Sars commissioner for another two years.
The Presidency announced commissioner Edward Kieswetter would stay on for two more years after an agreement between himself and Ramaphosa “to enable an orderly leadership transition in the organisation”.
Kieswetter was appointed in March 2019 for a five-year term which started in May 2019.
“Mr Kieswetter will continue leading the execution of the strategic direction of the revenue service while ensuring a smooth leadership transition,” the Presidency said.
The commissioner has been credited with rescuing the institution after it was hollowed out during the state capture years under Tom Moyane.
Consulting firm Bain & Company ended up repaying revenue for its botched restructuring of the tax agency, with interest amounting to R217m, according to a final report of the Sars Commission of Inquiry chaired by retired judge Robert Nugent.
It is understood Kieswetter had quietly expressed his desire to leave Sars, but Ramaphosa moved to keep him in the role for longer.
TimesLIVE
Sars sues Sasfin for R4.8bn over unpaid taxes by former bank clients
Image: Thapelo Morebudi
Financial services firm Sasfin Holdings on Tuesday said its banking arm had received a civil summons for a total amount of R4.87bn plus interest and costs from the SA Revenue Service (Sars).
It said the summons, in the form of a damages claim, was issued by the revenue service for Sasfin’s inability to collect income tax, VAT and penalties from former clients of the firm’s banking arm, a charge it vehemently denies.
“This summons relates to Sars’ purported inability to collect income tax, value-added tax and penalties allegedly owed by former foreign exchange clients of the bank,” Sasfin said in an announcement on the JSE news service SENS.
Sasfin said it had obtained legal opinion which supports its assertion that the claim is “outside the recognised parameters of applicable law and has a very remote likelihood of success”.
The claim dates to expatriation of money from 2014 when former Sasfin Bank employees colluded with then-clients, the company said. Criminal cases were opened against the implicated parties.
Sars commissioner Edward Kieswetter's term extended
“We are confident the Sars claim has no merit. We have filed a notice of intention to defend the matter, which we will do rigorously. It is unjust for banks to be held liable to Sars for taxes their clients have failed to pay,” said Sasfin CEO Michael Sassoon.
“Of importance is that this is not a tax claim, but a claim for damages and has nothing to do with Sasfin’s own tax affairs. The claim, which we emphatically reject, will involve a protracted trial action, and the matter is only likely to conclude in several years’ time,” Sassoon said.
TimesLIVE has reached out to Sars for comment.
Earlier on Tuesday, President Cyril Ramaphosa extended the term of office of the Sars commissioner for another two years.
The Presidency announced commissioner Edward Kieswetter would stay on for two more years after an agreement between himself and Ramaphosa “to enable an orderly leadership transition in the organisation”.
Kieswetter was appointed in March 2019 for a five-year term which started in May 2019.
“Mr Kieswetter will continue leading the execution of the strategic direction of the revenue service while ensuring a smooth leadership transition,” the Presidency said.
The commissioner has been credited with rescuing the institution after it was hollowed out during the state capture years under Tom Moyane.
Consulting firm Bain & Company ended up repaying revenue for its botched restructuring of the tax agency, with interest amounting to R217m, according to a final report of the Sars Commission of Inquiry chaired by retired judge Robert Nugent.
It is understood Kieswetter had quietly expressed his desire to leave Sars, but Ramaphosa moved to keep him in the role for longer.
TimesLIVE
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