High court sequestrates Agliotti estate

11 February 2014 - 02:10

By ERNEST MABUZA

Convicted drug dealer Glenn Agliotti's estate has been sequestrated over a R77-million tax debt.

Yesterday, the Pretoria High Court confirmed a provisional order it made in November, after Agliotti, 57, failed to show why it should not be made permanent.

Agliotti, who was not present in court, did not oppose the matter.

The application was made by the South African Revenue Service, which accused Agliotti of failing to pay more than R77-million in income tax and VAT.

In its application, Sars said Agliotti had submitted income tax returns until 2004. It said that despite having a millionaire lifestyle, Agliotti only declared a taxable income of R1.3-million for the period 1995 to 2004.

Sars said it had assessed that Agliotti's tax liability was R38.5-million between 2003 and 2008. As at July 2010, the interest on this was R22-million. Agliotti also owed Sars R17-million in VAT.

It said it became aware that Agliotti had used a bank account of Spring Lights 6 as a vehicle to receive funds from late mining magnate Brett Kebble's company, JCI Limited.

The revenue service said R39-million was paid into that account in separate deposits. This account received considerable mention in the corruption trial of former police commissioner Jackie Selebi.

Agliotti, the main witness in the trial, testified that he gave Selebi money to protect him from criminal investigation. At a Sars inquiry, he said it was possible that R11-million could have come from Kebble.

Kebble was killed in an assisted suicide in 2005. Agliotti stood trial for his death, but was acquitted.

Sars said its investigations also revealed that Agliotti had failed to disclose that he:

Was a beneficiary of a family trust;
Received income in a Swiss bank account held in his name ;
Made a R300000 contribution to a company in which he was director;
Earned R884000 from JCI in consulting fees.

Pieter Engelbrecht, a senior Sars manager, said there was a likelihood the trustee appointed would discover assets and might investigate Agliotti's offshore interests, including funds held in two foreign bank accounts.

Sars welcomed the sequestration order. Agliotti did not respond to attempts for comment.