SARS Media Release - SARS welcomes Gauteng North High Court judgment
PRETORIA, 31 JANUARY 2014 - Judgment was delivered earlier today in the Gauteng North High Court confirming a preservation order granted to the South African Revenue Service (SARS) over the South African assets of Mr Mark Krok (the respondent).
The respondents were also ordered to pay the costs of two counsel for SARS.
This action is the first mutual collection of taxes action between South Africa and Australia in terms of Article 25A of a Double Taxation Agreement between the two countries and an initial step to combating non-payment of taxes and strengthening the working relationship between South Africa and Australia.
SARS welcomes the Gauteng North High Court judgment as it confirms an important legal principle of mutual assistance and cooperation amongst revenue authorities in different countries. SARS believes the judgment will advance the capability of revenue authorities to combat cross border tax evasion and attempts to conceal or dissipate assets, particularly by high-net worth individuals.
SARS has, in terms of section 185(1)(b) of the Tax Administration (TA) Act, called upon Mr Krok to state whether or not he admits liability for the amount of R235 million or for a lesser amount of debt owed to the Australian Tax Office (ATO). Should Mr Krok fail to respond or comply with the provisions of Section 185 of TA Act, SARS will demand payment of the full outstanding amount of the said tax, which may result in immediate collection steps being instituted by SARS.