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Compromise agreement with Mr JS Malema

27 May 2014   (0 Comments)
Posted by: Author: SARS
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Author: SARS

Pretoria 26 May 2014 – The South African Revenue Services (SARS) welcomes the fact that Mr Julius Malema has acknowledged his failure to comply with his past tax obligations.

SARS accepts Mr Malema’s commitment to ensure that he remains compliant in the future and views the process as ongoing, in respect of Mr Malema’s acceptance that further assessments for tax years 2011 and 2012 will follow. The sentiments and apology expressed in the public statement released by Mr Malema are also welcomed. 
On 10 September 2012 SARS obtained a civil judgment in the Gauteng North High Court confirming an outstanding tax debt of Mr Malema in the amount of R16.2 million. Since then, with interest accruing, the amount has increased to R18 million. On 10 February 2014 the Gauteng North High Court granted a provisional sequestration order against Mr Malema for this tax debt. The return date for confirmation of a final order was set for 26 May 2014.
Mr Malema made two prior offers to compromise that failed the statutory requirements for such offers to be considered favourably. Mr Malema had to meet a number of statutory requirements in order for the compromise to be considered favourably, including making a full and verifiable disclosure in respect of his assets and liabilities and sources of income. Until Mr Malema has fully complied with payment arrangements as agreed, in terms of the approved compromise agreement, the provisional sequestration order as well as the appointment of the curator bonis will remain in place. 

SARS will not be bound to the compromise and the final sequestration order will be brought into effect in the event that—
  • It is found that Mr Malema has failed to disclose a material fact relating to his settlement
  • In the event that he has supplied materially incorrect information
  • Or if he fails to comply with provisions or conditions contained in the agreement.


Section 240A of the Tax Administration Act, 2011 (as amended) requires that all tax practitioners register with a recognized controlling body before 1 July 2013. It is a criminal offense to not register with both a recognized controlling body and SARS.


The Act requires that a minimum academic and practical requirments be set to register with a controlling body. Click here for the minimum requirements of SAIT.

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