Johannesburg - The Democratic Alliance argues president Jacob Zuma is personally responsible for a R63.9 million tax bill for fringe benefits accruing from his Nkandla homestead.
Addressing journalists in Johannesburg, DA leader Mmusi Maimane, said Zuma is not just liable for the R7.8 million in personal additions to the homestead, but also for tax benefits.
Towards the end of last month, National Treasury found that President Jacob Zuma should pay R7.8 million for non-security upgrades to his private Nkandla home. This came after the Constitutional Court in March ordered him to pay back a portion of the R250 million spent on the homestead, leaving the quantum up to treasury.
In a unanimous judgment read out by Chief Justice Mogoeng Mogoeng, the court instructed the National Treasury to determine an amount to be paid by Zuma within 60 days for “luxuries” added to his Nkandla home and gave the president 45 days to then personally pay that amount.
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“The Treasury is instructed to determine the reasonable costs that are the visitor’s centre, the cattle kraal, amphitheatre and the chicken run and the swimming pool which ought to be paid personally by the president,” said Mogoeng.
The judgement vindicated the Public Prosecutor’s findings.
Maimane says, in terms of the Seventh Schedule of the Income Tax Act, Zuma owes money to the South African Revenue Service, and by extension, the people of South Africa for the benefits he derived from the upgrade to Nkandla.
The Act defines a fringe benefit as: a taxable benefit contemplated in paragraph 2, whether the grant of such benefit is voluntary or otherwise.
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It is clear from this part of the Act that Jacob Zuma still owes tax monies for benefits he derived from the homestead, says the DA leader.
Maimane says Zuma is liable for income tax on the full value of the improvements made to his Nkandla home, a figure the DA has calculated at R63.8 million, including a payment penalty, but excluding interest.
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