GIANT banking group Absa has denied that it owes millions of rands in taxes relating to the Reserve Bank’s controversial R1,5bn lifeboat to Bankorp in 1990.
Johannesburg lawyer Peter Soller said that by failing to recover the R1bn in tax owed from Absa, Sars was discriminating against other taxpayers. If necessary, he would challenge this in the Constitutional Court.
Absa group executive director Frans du Toit said the full extent and the tax implications of the aid to Bankorp were disclosed and agreed with the South African Revenue Service (Sars) at the time. Absa bought Bankorp in 1992.
Earlier Soller threatened court action to recover a reward he believes is owed for information provided to Sars about the alleged outstanding taxes.
His client apparently tipped off Sars that Absa had allegedly failed to pay tax estimated at R1bn.
Sars is refusing to pay a reward on the grounds that it already knew about the matter. Soller says that if this is so, Sars should explain why it has taken no steps to recover the tax.
Copies of correspondence between Soller and Sars have been sent to President Thabo Mbeki, Finance Minister Trevor Manuel, Judge Willem Heath, Reserve Bank Governor Tito Mboweni, the chairman of Parliament’s watchdog committee on public accounts, Dr Gavin Woods, and PAC MP Patricia de Lille.
Sars was not available for comment.
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