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Johannesburg - Millionaire businessman Dave King has agreed to pay the SA Revenue Service R706.7 million to settle his tax debt, the two parties said in a statement on Thursday.
They said King appeared in the Palmridge Regional Court earlier in the day and entered into a plea and sentencing agreement with the National Prosecuting Authority.
He agreed to a payment of R706.7 million to Sars in respect of his personal income tax and the tax liability of Ben Nevis, a King trust company managed out of Guernsey.
The settlement was reached following submissions made to Sars by King and entities associated with him.
King said his experience should serve as an example to taxpayers who found themselves in a similar position with Sars.
“Rather seek early resolution and co-operate with Sars when asked by them to explain your tax affairs,” said King.
The fraud charges against King were not pursued by the State and King accepted liability in respect of 41 lesser counts of contravening section 75 of the Income Tax Act.
King had to pay a fine totalling R3.208 million (R80 000 per count) or face two years in jail.
He was also ordered by the court to pay an amount of R8.75 million towards the Criminal Asset Recovery Asset Fund via the Asset Forfeiture Unit.
King said he regretted not engaging sooner.
“I have found them to be extremely firm but fair in their dealings with me once I fully engaged with them,” he said.
The chief officer for tax and customs enforcement investigations at Sars, Gene Ravele, said the outcome demonstrated that Sars remained approachable to any taxpayer who wanted to resolve a tax dispute.
Sars welcomed the settlement and finalisation of the matter.