Finweek English Edition - - Openers -

IT WAS IN­TER­EST­ING to read that ANC deputy pres­i­dent Ja­cob Zuma has set­tled his dis­pute with the SA Rev­enue Ser­vice. How­ever, it would be fas­ci­nat­ing to know just how he achieved that and in­trigu­ing to know how that “set­tle­ment” af­fects Shabir Shaik, cur­rently a guest of the Gov­ern­ment for, among other mat­ters, cor­rupt­ing our na­tion’s for­mer deputy pres­i­dent.

As is well known, a large sum of money flowed from Shaik to Zuma. Pre­sum­ably, in any “set­tle­ment” with Rev­enue those funds would have had to be clas­si­fied as in­come, do­na­tions or loans. If the lat­ter were em­ployed then there would be the mat­ter of in­ter­est and re­pay­ment agree­ments to the sat­is­fac­tion of Rev­enue.

If, on the other hand, do­na­tions were made then do­na­tions tax of 20% above, in those days, R50 000/ year, would be payable by the donor, Shaik. Lastly, if it were in­come then Zuma would be li­able not only for the tax on in­come but also for oner­ous penal­ties.

Ah, to be a fly on the wall at Rev­enue…

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.