RAF takes on Sars

ACTION: OPENS CONTEMPT OF COURT ORDER AGAINST TAXMAN

- Roy Cokayne

The Road Accident Fund (RAF) has applied for a contempt of court order against the South African Revenue Services (Sars) because of its alleged failure to adhere to an interim interdict prohibiting the tax collection authority from deducting R5.1 billion or any part of this amount from the RAF fuel levies it collects for the fund.

Suspended RAF CEO Collins Letsoalo appealed to parliament's portfolio committee of transport in a meeting with the RAF last week to help the fund with the issue of non-payment by Sars.

"Sars has acted recalcitrant. In fact, we have opened a case of contempt of court against them," he said.

Letsoalo added Minister of Finance Enoch Godongwana was, since April, supposed to have submitted "a certain affidavit" to court on an urgent basis, but he has not done it and "so they [Sars] keep on deducting the money".

"Sars is unlawfully deducting our money.

"I hope this portfolio committee will write to them and ask them because clearly the ministry has not helped us. It's important that when we look at those matters you understand that R5.1 billion is a lot of money," he said.

Questioned by transport portfolio committee chairperson Selelo Selamolela about the issue, Letsoalo said the RAF had won its case against Sars, but the tax authority ignored the court order and still deducted the money.

R5 billion deducted?

He indicated that by now he is sure Sars has probably deducted R5 billion of that money.

"Where do we get the money? Remember, we didn't get an increase in the levy.