Dave King pays R700 mil in taxes - a cautionary tale for businesses
Dave King is hardly a household name in South Africa - but he made the news recently. Yesterday he reached a settlement with SARS and agreed to pay over R706 million in personal and company taxes. Read on to find out what your business can learn from King's mistakes...
Scottish-born millionaire businessman Dave King has made headlines by agreeing to pay SARS R706 million for taxes he owes to the state, reports Fin24
. The alternative to paying the taxes was a two year prison sentence.
The crucial mistakes Dave King made that led him to pay over R700 million to SARS...
Dave King didn't co-operate with SARS from the beginning.
He felt SARS was victimizing him and tried to wriggle out of the process altogether. While he fought, SARS kept piling up those fines until they amounted to a cool R3.6 million.
He was deliberately non-compliant with the tax laws
. When SARS first contacted him about the strange incidents years ago, he denied it and didn't want to co-operate. He should have fixed his non-compliance years ago. Then he wouldn't have to pay over R8.75 million to the Criminal Asset Recovery Fund.
King relied on debt to cover his costs
. He claimed R33 million from Gary Player for a loan in 1999. He insisted he couldn't pay SARS anything until he got the money from Player.
Once Dave King changed his tune, SARS resolved the matter quickly. He says he regrets not co-operating with them from the beginning. King called treatment from SARS 'extremely firm but fair'. He urges tax
dodgers to co-operate with SARS.