ANC ‘may have committed a crime’ by hiding tax money from SARS

The ANC’s tax woes are set to take an even gloomier term this week, after their failure to hand over vast PAYE funds to SARS – despite deducting the fees from employee wages – was branded a ‘criminal act’ by their political opponents.

The ANC and its tax crisis

This week, the tax agency managed to reclaim R17 million from the 109-year-old organisation, commandeering a chunk of their funding from the IEC. This has led to delayed wage payments within the ANC, and the party remains on the ropes.

Serious cash flow problems are haunting Luthuli House, and alleged attempts to hoard what’s left of their reserves in a cynical and clandestine fashion have not impressed the DA one bit. Geordin Hill-Lewis, the shadow finance minister, believes that the attempt to sweep the PAYE donations under the carpet equates to a criminal offence.

What criminal offence *might* have been committed?

The party could be in violation of the Income Tax Act, which can punish offenders with JAIL TIME for withholding funds owed to SARS. According to Hill-Lewis, the ANC is directly liable ‘for any tax debts on its employees names’ if this is down to possible acts of fraud. Either way, it seems that this issue could have serious ramifications for the political institution:

“The ANC is possibly guilty of criminal offences, in failing to pay over millions in Pay-As-You-Earn (PAYE) to the SARS while deducting these monies from its employees’ wages. In terms of the Income Tax Act, it is a criminal offence punishable by prison time for anyone to willfully and without justification withhold funds owed to SARS.”

“As the withholding agent for its employees’ PAYE taxes, the ANC, just like any other employer in South Africa, is directly liable for any tax debts on its employees’ names that are incurred due to its own negligent or possibly fraudulent action. Any suggestion of corruption on the part of the governing party must be prosecuted – to the fullest extent of the law.”