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True or false? Most Ferrari owners in SA earn less than R34 000 per month

Tax-dodging? Judge Dennis Davis says lifestyle audits should start at NaTIS after a shock study revealed that ‘most Ferrari owners in SA earn less than R34 000 per month’.


Image: Pixabay

It recently came to light that most Ferrari owners in South Africa supposedly earn less than R34 000 per month. This according to the “limited” taxable income these “very fancy” supercar owners have been declaring…

Ferrari owners and how much tax they pay

This comes after judge Dennis Davis, chair of the Davis Tax Committee, revealed that they did a study on a group of people “with very fancy Ferraris parked outside a hotel”.

During a webinar about the future of financial wealth in South Africa, he said that many South Africans are living lavish lifestyles, but only declare “limited” incomes to the South African Revenue Service (SARS).

According to My Broadband, a SARS employee working with Davis, took down the registration numbers of the 26 Ferraris and then had a look at how much tax the owners are paying.

“What it revealed was that not one of the owners returned a taxable income of more than R400 000 per year or R34 000 per month,” the publication states.

“Davis highlighted that it is not possible to fund a lavish lifestyle, like driving an expensive Ferrari, on an income of only R400 000 per year.”

Davis also revealed that SARS data showed that only 5 000 South Africans report taxable income of R5 million or more.

“That makes no sense to me. I invite people to drive in Sandton, Bryanston, Camps Bay, and Bishopscourt – you have to be earning significant amounts to afford houses in these areas,” he added.

He suggested that the government bumps up lifestyle audits for wealthy South Africans. This will also help South Africa get the money it needs as it is short of R300 billion this year – a “shakeout of tax-dodging”, according to Cape Talk.

Also read: ‘Fast food Ferrari’: The 1962 Breadvan – Ferrari’s most bizarre car ever [watch]

Lifestyle audits and the ‘Al Capone technique

He says the process of lifestyle audits should start at NaTIS — which maintains a registry of cars in South Africa — and look at people who own expensive vehicles, such as Ferraris.

“If you have a R3 million Ferrari but are only reporting R100 000 in taxable income, I think SARS is entitled to knock on your door and ask you to explain,” he said.

He added that he would like proper lifestyle audits of all people who are accused of corruption in front of the Zondo Commission.

“The Al Capone technique is the best way to stop corruption. If we can do that, I can assure you that we will bring people to book.”