Economic Freedom Fighters leader Julius Malema has reached a settlement agreement with the SA Revenue Service (Sars), the High Court in Pretoria heard on Monday (26/05/2014).
“Overnight… Mr Malema entered into a conditional compromise agreement [with Sars],” Nic Maritz, for Sars, told the court.
“The parties have agreed to an extension.”
Tumi Mokwena, for Malema, confirmed the settlement agreement.
Malema’s provisional sequestration was extended and the matter was postponed to August 25.
A draft order was handed to Judge Cynthia Pretorius who signed it. Malema was not in court.
According to court papers, Malema owed Sars R16 million plus interest after failing to submit tax returns between 2006 and 2010.
In 2010 Sars contacted Malema about his failure to submit tax returns. It took Malema 18 months, after many attempts by Sars, to file his outstanding returns.
Malema also failed to register the Ratanang Trust for tax purposes, and Sars had to do this on his behalf. Sars attached some of Malema’s property to recoup the taxes he owed.
In February, high court Judge Bill Prinsloo ordered that Malema’s estate be provisionally sequestrated.
Malema and anyone else who did not want the order to be made final had had until 10am on May 26 to give reasons why this should not happen.
A final sequestration order would affect Malema’s political career, as he would not be allowed to serve as a Member of Parliament. – Sapa