North Gauteng High Court slaps Gold Leaf Tobacco with a preservation order
Zimbabwean cigarette company, Gold Leaf Tobacco Corporation has been slapped with a preservation order by the South African Revenue Service (SARS). SARS applied at the North Gauteng High Court arguing that the controversial cigarette manufacturer and its directors get a slap. It is said that the order will prevent the Zimbabwean-owned company from dissipating realisable
North Gauteng High Court slaps Gold Leaf Tobacco with a preservation order
Zimbabwean cigarette company, Gold Leaf Tobacco Corporation has been slapped with a preservation order by the South African Revenue Service (SARS).
SARS applied at the North Gauteng High Court arguing that the controversial cigarette manufacturer and its directors get a slap.
It is said that the order will prevent the Zimbabwean-owned company from dissipating realisable assets and thereby frustrating the collection of taxes.
SaARS applied for the court to issue a preservation order after arguing that GLTC was part of the illicit tobacco industry which was cheating the taxman of his dues.
IOL reports that the tax revenue authority welcomed an order by the North Gauteng High Court granting a preservation order in terms of section 163 of the Tax Administration Act No. 28 of 2011 against GLTC and its directors, Simon Rudland and Ebrahim Adamjee.
SARS said it has been investigating and clamping down on the illicit economy focusing on the tobacco, gold, and fuel industry over the last year, and this was one of the many enforcement steps executed.
On behalf of the tax collector, commissioner Edward Kieswetter said they were harnessing their capabilities to make non-compliance with legal tax obligations.
“The conduct of non-compliant taxpayers is depriving Government of legitimate resources to the prejudice of both the State and the South African public,” he said.
“In aggressively addressing this scourge, SARS will continue to pursue its mandate without fear, favour, or prejudice.”
The publication also published that a study commissioned by British American Tobacco South Africa (BATSA) and conducted by Ipsos last year revealed that Gold Leaf Tobacco Corporation’s products were among the cheapest on offer in the market.
Meanwhile, Tax Justice founder Yusuf Abramjee said this was a huge breakthrough in the battle against the illicit cigarette trade that robs South Africa of R19 billion a year.
“For over a decade, GLTC have been the prime suspects as South Africa’s illegal cigarette trade has grown into a national menace of devastating proportions,” Abramjee said.
Main Image: Gold Leaf Tobacco Company/Twitter
