Malema still under provisional sequestration until March

Economic Freedom Fighters’ leader Julius Malema remains under provisional sequestration at least until March next year.

On Monday the Pretoria High Court extended the provisional order it granted in February to sequestrate Malema’s estate on the basis that he was factually insolvent. The South African Revenue Service (SARS) had applied for the order.

Malema owed a tax debt in the region of R16-million related to assessed income tax, additional tax and interest for the years 2005 to 2011. SARS said it established that Malema had failed to register his family trust, the Ratanang Family Trust, as a taxpayer as he was obliged to do.

SARS said the review of Malema’s tax affairs and trust showed that Malema and the trust received numerous amounts, which they failed to declare in the relevant income tax returns. In some instances, considerable amounts were declared only as non-taxable or exempt income.

Malema had until May to show why the provisional order should not be made permanent. However, he reached a deal with the taxman and the provisional sequestration order was extended until August.

In May, Malema issued a statement saying SARS had accepted an offer of compromise he submitted in respect of his outstanding tax.

Malema also said he accepted that he did not attend to his tax affairs in the manner that was required.

“I would urge others who find themselves in a similar predicament as I did to rather work with SARS and resolve their disputes in an amicable manner,” Malema said at the time.

SARS spokesman Adrian Lackay said Monday’s order was granted by mutual agreement between SARS and Malema to allow for the settlement agreement to be finalised.

“SARS’s position is that the legal process must continue before court. SARS will not make further public statements on the matter at this stage,” Lackay said.

Efforts to get comment from Malema and his lawyer were not successful.