The African National Congress (ANC) has dismissed reports that it has been given an ultimatum to either settle its outstanding R100 million tax bill or have its assets seized.
This after the Daily Maverick reported on Monday that the Gauteng High Court issued a civil judgment ordering the sheriff to seize assets worth R102,546,580.76 within 10 days.
The report alleged that the ANC failed to pay payroll tax, UIF or skills development tax, despite deducting them from its 346 staff.
But the ruling party says there is no truth in the report.
“The African National Congress (ANC) noted an article in one of the online newspapers accusing the organization of being a ‘tax evader’ and further that the South African Revenue Service (SARS) issued an ultimatum 10 days for payment of more than 100 million tax debts,” spokesman Pule Mabe said in a statement on Monday.
“The ANC is neither aware nor informed of such an ultimatum by SARS and therefore rejects these inaccurate, malicious, questionable and divisive media reports with the contempt they deserve. ANC are private and handled by the General Treasury (TGO) which is responsible for
SARS from time to time on such cases.
According to Mabe, the ANC TGO entered into legally authorized payment agreements with SARS to repay its debts.
“The ANC will continue to pay all taxes and debts owed to SARS, and certainly find the tax avoidance allegation against the movement abhorrent and irresponsible.
The ruling party’s financial difficulties were brought to light last year after staff members staged pickets in all provinces to demand that the wages due be paid.
Paul Mashatile has previously blamed the Political Party Funding Act for the ANC’s financial difficulties.
“The challenge we have, if I can repeat it again, is that 70% of our revenue comes from the private sector and the law requiring disclosure has seen many people withdraw their funding. So we are struggling to raise funds,” he said in December.