Sars was not fair in tax assessments: Mpisane

Sars handled the tax assessments of businesswoman Shauwn Mpisane unfairly, the Durban Regional Court heard on Tuesday.

Jimmy Howse, for Mpisane, said the South African Revenue Service did not formally inform Mpisane that she owed it R13 million.

Mabongi Flora-Junior "Shauwn" Mpisane is accused of inflating invoices by more than R5 million to cut her tax bill. She is also accused of violating the Close Corporations Act by remaining the sole member of Zikhulise Cleaning, Maintenance and Transport CC when she had a previous fraud conviction. She has pleaded not guilty.

In 2008 Mpisane's company recorded turnover of R120 million, with a profit of R73.7 million.

In March 2009, she met Sars officials regarding her tax bill.

Howse cross-examined Sars group executive Mashudu Johannes Makwakwa and said Mpisane had no legal representation when she met tax officials.

"You did not follow this meeting with other hand-written documents. No minutes from the meeting were kept?" Howse asked.

Makwakwa agreed there was no formal communication, but said Mpisane had been made aware that she had to pay R13 million or file an objection.

Howse said Mpisane paid R20 million she owed to Sars by February 2010. Makwakwa said he was only aware of a payment of R3 million.

Howse said Sars only demanded the R13 million after Mpisane paid the R20 million.

He said Mpisane filed an objection to her tax assessment. Waheeda Osman, a Sars auditor in Durban, rejected this. Howse said Osman gave Mpisane's confidential information to police to investigate.

The trial continues.