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Finweek English Edition - - FEEDBACK - Kiekie Mboweni

I thor­oughly en­joyed the in­sight­ful piece by Bruce Whit­field en­ti­tled King (hum­ble) Pie ( Fin­week, 12 Septem­ber is­sue).

The South African Rev­enue Ser­vices (SARS) ver­sus Dave King is the long­est and the most so­phis­ti­cated tax bat­tle in SA his­tory. The jury is out on whether the set­tle­ment favours SARS or saves Dave King, but at one point SARS is­sued King with a R2bn tax bill and he has set­tled with a frac­tion of that: R706m.

What con­sid­er­a­tions were made to ar­rive at the amount, and why al­low for such a low set­tle­ment? It would be in SARS’s best in­ter­est to pub­lish the de­tails of the set­tle­ment to build pub­lic con­fi­dence on how they treat tax­pay­ers ir­re­spec­tive of the amount of wealth they might or might not have. King has shown SARS the mid­dle fin­ger for 13 years and he has been al­lowed to get off the hook lightly. They can’t prove his wrong­do­ing and are hop­ing he plays ball go­ing for­ward.

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