BURS, Masitara lock horns

OLIVER MODISE
Staff Writer | Thursday February 14, 2008 00:00

The case is before High Court Judge, Ian Kirby after it was deferred to the 22nd of February 2008 last year.

This follows an application by Masitara's lawyer, Doreen Khama asking the court to suspend action on the judgement requiring her client to comply with the Commissioner General's finding that he owes the government tax.

Masitara's lawyer hit back with guns blazing in a recent application directing BURS to avail for inspection the offices of its attorneys, Sadique Kebonang so that they can fish out all the records relating to the audit on Masitara.

His lawyer contends that after perusing through the records of audit from BURS, it was observed that the proceedings did not have supporting documentation.

Masitara's lawyers have indicated that the audit makes reference to a Mercedes Benz motor vehicle without providing any documentation.

An affidavit from Masitara states BURS ignored some income returns depicted in the financial statements forwarded to BURS in the years 2000,2001 and 2002.

He argues that the returns reflect total incomes slightly in excess of the bank deposits.

'The reasons that not all the declared income was deposited is because relatively minor amounts of income received were utilised for the micro-lending operations conducted by the applicant,' reads the application.

Masitara lawyers believe it is essential to obtain the documents of the audit in order to be certain about the basis of the allegations of tax evasion against their client.

A counter submission from BURS lawyer, Sadique Kebonang refutes Masitara's application pointing out that Masitara has the audit documents.

'There is no doubt in my mind that the real purpose of the present application is to delay the finalisation of the applicant's unmeritorious application and further recovery of the tax due by the applicant,' says Kebonang.

Kebonang pleaded with the court to be alarmed by Masitara's delaying tactics. BURS want Masitara to pay now and try challenging the taxman in court later.

In the same response, the Commissioner of Taxes, Freddy Modise says Masitara's application is misconceived, stating that all the issues were just a matter of legal argument at the hearing.

Masitara also wants a writ of execution issued by BURS against him to be suspended until the 28th of March 2008.

The commissioner claims that Masitara Investments owes government P625,111.23 in assessed tax. An amount of P264, 576.08 is included as a penalty at an interest rate of 1.5 percent per month.

This raises Masitara's tax debt to P889, 687.31.