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The Citizen
14-05-2025
- Business
- The Citizen
Taxpayer battling with a crypto tax nightmare for months
Owing Sars R1.7m from profits he has not made. A Sars official has provided some insight, and hints that there may have been some 'misapplication' in this case. Picture: Shutterstock A taxpayer has been battling with the South African Revenue Service (Sars) for months after receiving an additional assessment of an eye-watering R1.5 million from crypto trade income. The taxpayer made only one deposit of R185 000 with a crypto trading platform in 2021, and subsequently withdrew about R70 000. He was left with an additional assessment of more than R1.7 million after penalties were included. John Godsiff, the aggrieved taxpayer, says the additional assessment was issued on 10 March, and on 13 March he sent a lengthy letter to Sars when he became aware of the additional assessment. He claims he received correspondence from Sars from an unfamiliar address, and when checking his eFiling profile, there was no correspondence verifying the email from Sars. The additional assessment was only placed on his profile at a later stage and could be verified as authentic. ALSO READ: Are you making money with crypto assets? Sars is looking for you 'Bald and threatening' claim The amount was payable on 17 March. According to Godsiff, R16 000 was extracted from his bank account on the same day. Sars presented a 'bald and threatening claim' of the sum of R1 738 398 without supplying 'any helpful background' about where the amount had been sourced, nor any detail as to how the amount had been calculated. Godsiff approached Moneyweb on 18 March, noting that he had attempted to contact Sars via its helpline and had also tried to deal with the matter via the eFiling system. He received no feedback from Sars following his lengthy letter. Sars spokesperson Siphithi Sibeko declined to discuss the matter, noting that Sars is prohibited by Chapter 6 of the Tax Administration Act from divulging any taxpayer information. 'In this respect, Sars will not be commenting. The taxpayer concerned can approached [sic] the nearest Sars Branch and all his questions will be addressed therein.' Following several attempts to obtain an interview with a Sars official to understand how a taxpayer can end up in this situation, Andrew Wes – head of corporate income tax product, process and design at Sars (who was involved in establishing Sars's approach to cryptocurrencies) – explained the process. ALSO READ: Sars' spotlight on crypto traders signals new era of accountability, say experts Treatment of crypto profits The general approach to crypto assets is to treat them as an asset with intangible value – taxpayers will be taxed as if a transaction was a barter transaction. 'The general approach is that crypto assets are to be treated like any other asset for income tax purposes,' Wes told Moneyweb this week. This approach was set out in a media statement in April 2018 when Sars noted that it will continue to apply normal income tax rules to cryptocurrencies and will expect affected taxpayers to declare cryptocurrency gains or losses as part of their taxable income. The onus is on taxpayers to declare all cryptocurrency-related taxable income in the tax year in which it is received or accrued. Failure to do so could result in interest and penalties. ALSO READ: Sars is spying on your social media accounts – Here's why Taxpayer's additional assessment Godsiff's additional assessment for the 2022 tax year indicated an amount of more than R1.5 million for 'income other than turnover' classified as crypto asset profits. He received an understatement penalty of more than R646 000 for 'omission of income' and a penalty of R85 294 due to the underestimation of provisional tax. Godsiff noted that he did not sell any of his funds (besides withdrawing around R70 000) to be able to make such a profit. Two days before he was supposed to pay the additional assessment, he had an amount of R102 217, with a cash balance of R4 153 in his account on the crypto platform. ALSO READ: Unjustified debt collection measures cause unnecessary taxpayer distress Clear as mud Following a visit to a Sars office, he lodged a notice of objection, a remission of penalties, and a suspension of payment. Subsequently, he received a statement of penalty with a null balance and a confirmation of the suspension of payment. 'The position is as clear as mud,' he said. His income tax assessment for the 2023 year was equally 'confusing'. The assessment indicated that he owed Sars an amount of R1.7 million, yet the assessment summary information indicated a net debit amount of 0.00. According to Godsiff, he has not received any further correspondence from Sars. Wes did not comment on the Godsiff matter, stating only that it had been escalated. However, he gave a simple example of how the process is supposed to work. The onus remains on the taxpayer to declare crypto profits or losses and to keep all documents that will offer a reasonable level of proof when there is any request for supporting documentation or in the case of a dispute. If a taxpayer buys crypto assets worth R100 000 and later sells them for R1.2 million, they have a crypto asset profit of R1.1 million, which is subject to tax. 'To the extent that the process deviates from this example there is some misapplication,' said Wes. This article was republished from Moneyweb. Read the original here.
IOL News
12-05-2025
- Health
- IOL News
Premier powerless to axe misfiring KZN MECs
KZN Premier Thamsanqa Ntuli. Image: Supplied DESPITE calls for Premier Thamsanqa Ntuli to sack the under performing MECs for Health and Education in KwaZulu-Natal, his hands were said to be tied as any cabinet reshuffle would likely collapse the provincial power pact of the Government of Provincial Unity (GPU). At the centre of the storm were Sipho Hlomuka, the MEC for Education, and Nomagugu Simelane-Mngadi, the MEC for Health, both senior ANC figures in KZN politics. Their departments account for the lion's share of the provincial budget, yet both have been rocked by controversy and dysfunction claims. Hlomuka has been under fire from teacher unions amid the crisis besetting his department, including the delayed payment of Grade R teachers and non-payment of service providers. This has sparked widespread condemnation of the Education MEC. UMphathiswa wezeMpilo KwaZulu-Natal uNksz Nomagugu Simelane, umnyango wakhe okweleta osomabhizinisi uR1.7 billion Image: SIGCINIWE Simelane-Mngadi who is at the helm of the ailing health department, has also been on receiving end of criticism from disgruntled service providers who were not paid. She revealed last week that her department owed them R1.7 billion. Hlomuka was the deputy provincial secretary while Simelane-Mngadi was deputy provincial chairperson for thw ANC in KZN, before the provincial structure was reconfigured in February following poor showing during the last year's national elections. MEC for Education in KwaZulu-Natal Sipho Hlomuka. Image: Tumi Pakkies Independent Newspapers Ntuli, in his capacity as premier, has the powers to appoint and remove members of the provincial executive council. He is also the IFP provincial chairperson, and assembled his cabinet in June last year, following his election as premier of the province. Despite the pressure, insiders said Ntuli cannot act unilaterally. The GPU, an alliance between the Inkatha Freedom Party (IFP), African National Congress (ANC), Democratic Alliance (DA), and the National Freedom Party (NFP), was formed to govern the province after no party secured an outright majority in the last election. Any reshuffle would require consensus from all coalition partners. This was part of the power-sharing deal agreed to by the said parties. National Education, Health and Allied Workers' Union's (Nehawu) provincial secretary Ayanda Zulu said: "We are not happy with a lot of things that are happening in the department of health as Nehawu. We had a meeting with the MEC and raised the matters that concern us as the union." Zulu said some of their concerns included the plight of workers amid the ongoing crisis in the department of health. "Our biggest concern is the workers and people of the province who continue to receive bad service from the department of health," said Zulu. A source in the provincial government said Ntuli's hands were tied and argued that any reshuffle without the agreement with GPU partners would" backfire spectacularly". "The reality is that the premier is not happy with the performance of some of his MECs. But if he just replaced them. That would backfire spectacularly for him and this could even collapse the provincial government," said the source. The provincial secretary for the South African Democratic Teachers Union (SADTU) said:" The problems in the education department in KZN are as a result of austerity measures (budget cuts ) and the cost cutting measures imposed by the Provincial Treasury and the Office of the Premier." A Grade R teacher in KZN, who spoke on condition of anonymity, said:" The MEC is clearly failing. I think it's time the province gets a new MEC, maybe they will deliver. But again, the turnaround of the provincial department will not be an overnight thing because of the many crises the department is facing," said the teacher. Another teachers' union, the National Teachers Union (NATU) have also previously called for accountability, and demanded Premier Ntuli to wield the axe over Hlomuka. Attempts by Daily News to obtain responses from the offices of Premier Ntuli, MEC Hlomuka, and MEC Simelane-Mngadi were unsuccessful, as their spokespersons failed to respond to inquiries. DAILY NEWS
Eyewitness News
09-05-2025
- Politics
- Eyewitness News
NPA's Batohi yet to give a decision on representations made by Mapisa-Nqakula
JOHANNESBURG - National Director of Public Prosecutions Shamila Batohi is yet to give a decision on representations made by former National Assembly Speaker Nosiviwe Mapisa-Nqakula. Mapisa-Nqakula returned to the Pretoria High Court on Friday for her corruption and money laundering case. READ: Corruption-accused Mapisa-Nqakula changes lawyers; case postponed to June She is accused of receiving R1.7 million in kickbacks in exchange for tenders when she was the defence minister. On Friday, the court was set to receive an update on submissions Mapisa-Nqakula made to Batohi's office, but State prosecutor Paul Louw addressed Judge Papi Mosopa on the process. Mosopa: "That process is not yet finalised?" Louw: "My lord, I do not know." Mosopa: "Are you not being kept abreast? Louw: "What I have been told is that the decision will be imminent next week."
IOL News
07-05-2025
- Health
- IOL News
Premier Ntuli demands accountability amidst KZN's government crisis
KwaZulu-Natal Premier Thamsanqa Ntuli. Image: Supplied IN A BID to get his KwaZulu-Natal's provincial government in order, Premier Thamsanqa Ntuli has called for accountability from his MECs amid the struggles of the Department of Health and the limping-along Department of Education. Ntuli held a marathon media briefing with all members of the Provincial Executive Council (MECs) present, following its normal cabinet meeting in Pietermaritzburg on Wednesday. The briefing came as the KwaZulu-Natal Health Department, led by MEC Nomagugu Simelane-Mngadi, faced a financial crisis, having racked up an alarming R1.7 billion debt to service providers. As a result, several key health projects had to be halted, leading to a protest outside the provincial headquarters in Pietermaritzburg on Monday. The angry service providers blocked the entrance, demanding their overdue payments.' Ntuli condemned the actions of the protestors, saying, 'We also wish to condemn the barricading of the offices of the Department of Health by disgruntled service providers, on Monday. No dispute, however large, should be resolved through violence in KwaZulu-Natal. We live in a constitutional democracy and we must always use legal avenues to settle our disagreements.' Simelane-Mngadi, while addressing the matter, confirmed the R1.7 billion debt and explained that the department was cutting back on certain projects to free up funds to pay service providers. 'We are dealing with the issue, and we will cut some projects and divert the saved funds toward payments to service providers,' she said. She also mentioned that negotiations were underway with service providers, including those with monthly payments over R500,000, to spread their invoices over two months. The department's financial difficulties have caused significant disruptions to health services across the province, with several service providers halting operations due to unpaid invoices. On the National School Nutrition Programme (NSNP), which had more than 1700 services, Ntuli said the 22% unpaid service providers of the NSNP, under the education department, would receive their payments on Friday, May 9. 'We are pleased to report that on April 24, 2025, at least 78% of the payments had been successfully processed. Attempts to finalise the remaining payments on April 25 and May 2 were unsuccessful. This was due to technical difficulties linked to the new financial system, BAS Version 6, said Ntuli. The department of education was also battling increased controversy stemming from the non-payment of Grade R teachers in KZN. The Daily News' report, this week, highlighted their plight after they were not paid their April salaries. Many teachers, including Nondumiso Ngcobo, a Grade R teacher at Motala Primary School in Pinetown, said the non-payment has plunged her finances into disarray. Education MEC Sipho Hlomuka said: 'It is not true that some teachers won't be paid. In terms of the educators for Grade 1, there was a challenge because, we unfortunately did not renew their contracts in time. But they have been paid." He added: "We are human beings and we make mistakes." Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕
IOL News
07-05-2025
- Health
- IOL News
Budget cuts force KwaZulu-Natal Health to cut projects amid R1. 7 Billion debt
KwaZulu-Natal Health MEC Nomagugu Simelane has confirmed that her department owes services providers R1.7 billion. Image: Supplied The KwaZulu-Natal Health department will cancel a number of projects to pay R1.7 billion it owes service providers. This was announced by MEC Nomagugu Simelane-Mngadi in a joint media briefing with Premier Thami Ntuli and the executive council on Wednesday. The MEC confirmed that her department was indeed owing service providers to the tune of the said amount, however, she said her department had started paying service providers especially those who have invoices below R500 000. She said to avoid the debt accumulating further, her department has decided to cut a certain number of projects which she said the department was busy trying to identify. The MEC further announced that she had started negotiating with service providers whom the department pays over R500 000 a month to arrange to spread their invoices for two months because the department could not meet the 30-day payment policy. 'We wish to confirm the figure of R1.7 billion that was reported that we owe service providers is correct, however, we must say we are dealing with the issue and as part of settling the debt and avoid the same situation to escalate further in this financial year, we are going to cut some projects and divert the saved funds to the payment of service providers until such time we have enough budget allocation to settle all the money owed to service providers,' said Simelane-Mngadi. Explaining why the department fell behind in paying service providers, Simelane-Mngadi said the department did report to the premier and Treasury in November last year that because of budget cuts in the last financial year, the department would experience problems in meeting payment obligations. There have been complaints that patients were starving in the hospitals because there was no money to purchase food.
