Revelations about his alleged tax evasion have led to a dentist bringing a multi-million rand defamation case against two publications, writes Rehana Rossouw
AN American-born dentist given South African citizenship in 1981, Dr Robert Milton Hall, “knew how never to pay tax and how to make a living out of fiddling the Finrand”.
This is one accusation published about Hall in 1994 which is now the subject of a multi- million rand defamation case in the Supreme Court in Cape Town .
Investigative publication noseWEEK claimed in the report that Hall was a “name” on the political scene in Cape Town who donated R10 000 to the National Party, in 1987 supported independent election candidate Denis Worrall, in 1989 pledged support to the Conservative Party and in 1992 was prominent in the Free Cape Movement which supported Mangosuthu Buthlezi.
noseWEEK also claimed Hall entertained Reserve Bank officials at his home in order to avoid paying taxes and establish trusts abroad to harbour his funds.
Hall is suing noseWEEK and the Argus, which reprinted the report, for a total of R1,6- million.
He claimed in court this week that the article was defamatory, stating directly or by innuendo that he was a liar, that he was not law abiding, that he misrepresented his income to avoid paying income tax, that he frequently transgressed the laws relating to exchange control, that he forged a signature whenever the occasion demanded and that he improperly influenced officials in the Reserve Bank to turn a blind eye to his transgressions of the exchange control laws.
The article in question alleged that Hall claimed he had no assets.
Hall is claiming R1-million from the Argus for damage to his reputation and R50 000 for “humiliation and degradation”. Argus lawyers this week successfully reduced his original damages claim from R2-million to R1-million.
He is also claiming R500 000 for damages from noseWEEK and R50 000 for “humiliation and degradation”.
In its article, noseWEEK claimed that although Hall owns a property called the Stellenkloof Mansion near Stellenbosch, with a “swan lake”, orchid house and “show stables” purchased for R2-million 12 years ago, he allegedly told the Receiver of Revenue his only income was a social security cheque of $650 (R2 535) each month from the United States government and $2 650 (R10 335) savings.
“He has to be poor, because, since arriving in South Africa in 1979, he has never declared an income or paid tax, here or anywhere,” the noseWEEK article claimed. “Each year he has rendered a nil return to the Receiver …”
Hall became a South African citizen in 1981. noseWEEK claimed he “solemnly lied” to the Reserve Bank not long afterwards that he was not permanently resident in South Africa.
“Ever since then … Dr Hall has been treated by the Reserve Bank as a non-resident, and been allowed to do repeated Finrand deals which, by law, are denied to permanent residents,” the article claimed.
“Since the early 1980s the Reserve Bank has known that Dr Hall operates his off-shore business interests through a trust registered in Jersey and a Panama company, known as the Grada Corporation.
“He has, from time to time, declared so himself. So transparent is his ownership of Grada Corp that he does not even bother to get one of the front directors in Switzerland to sign contracts on its behalf. Instead, he brazenly fakes Marlene Boesch-Weber’s signature whenever the occasion demands.”
Mr Justice JH Conradie presided. The case was adjourned to next Monday to allow noseWEEK editor Martin Welz to make an appilication for the Receiver of Revenue to disclose certain files.