Taxing time for animal shelter

Wrangle over Sars compliance results in further delay in payment to SPCA



The issue of finance and tax compliance has left the Nelson Mandela Bay municipality and the Uitenhage SPCA fighting like cats and dogs.
Society for the Prevention of Cruelty to Animals (SPCA) district chair Deirdre Swift said an arrears payment, for July and August, was due to be paid by the metro on November 1.
However, two weeks before the due date, the municipality informed the SPCA it would not receive the amount of R154,964 as it did not meet the requirements of the municipality’s services providers compliance policy.
This is despite the municipality having paid the account since the policy changes were made two years ago. This the municipality attributes to the account being “sundries” [small debit amounts placed in one general ledger account].
The amended policy states that all service providers must be registered and tax compliant with Sars.
In September, the pound was forced to close its doors following non-payment by the municipality since July.
Municipal spokesperson Mthubanzi Mniki blamed the SPCA for the non-payment, saying it failed to keep abreast of the policy change, despite the municipality hosting numerous supplier information sessions.
Swift said the total amount due to the SPCA since July amounted to R268,231. The running costs of the animal shelter average about R140,000 a month.
“The municipality says it’s our fault for them not paying us, because we are not tax compliant,” Swift said.
“Two weeks ago – when the outstanding money was due [to be paid] – the metro then discovered that we were not tax compliant,” Swift said. “This information was never communicated to us.
“In May when I raised concerns [relating to] the renewal of the policing services agreement, the municipality could have picked up the issue but they never responded.”
Swift said the municipality had failed the animal shelter by not honouring its own mandate.
“The pound is officially closed, but as per the interim mandate of public health that states that the SPCA may not turn an animal away – we have been accepting strays and picking up reported animals.” Swift said the SPCA was in the process of registering the animal shelter with Sars.
Mniki said the SPCA would be paid the amounts for July and August within 30 days aft- er its tax compliance certificate appeared on the municipal database.
Asked about payments for services rendered after the SPCA’s closure, he said: “There was no formal instruction for SPCA to perform the services on behalf of the municipality as there was no valid contract.
“It would be irregular to pay for services where no formal contract exists.”

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