NGWANE MILLS TO PAY SRA E10.5M

MBABANE – The dust between the Swaziland Revenue Authority (SRA) and Ngwane Mills (PTY) Limited has finally settled.
This comes after the parties agreed that Ngwane Mills should pay E10 500 000 million as full and final settlement.

SRA was initially demanding E40 109 557.26  from the company, which was in respect of Valued Added Tax (VAT) together with additional penalties levied thereon.  The deed of settlement between the parties was signed at a time when Ngwane Mills had filed an appeal against the judgment of the High Court, which had ordered it to pay the E40 109 557.26.  

The deed of settlement was yesterday presented to the Supreme Court by SRA lawyer Sidumo Mdladla, who also applied that it should be made an order of the court.     
According to the agreement, Ngwane Mills and SRA engaged in negotiations and agreed to settle the dispute.

inclusive

“The applicant (Ngwane Mills) has agreed to settle the respondent’s (SRA) claim by making a full and final settlement of E10 500 000, which is inclusive of the respondent’s claims to penalties, interest and legal costs associated with the claim,” reads part of the deed of settlement which was yesterday made an order of the court.
It was further agreed that Ngwane Mills would pay the aforementioned amount as follows:  Through equal monthly instalments of E291 666. 66 for a period of 36 months commencing on April 30,2019 to April 30, 2022 on each and every last day of the subsequent months.

The parties also agreed that in the event any instalment was not paid by the applicant on time, an interest of nine per cent per annum would accrue thereafter.
SRA agreed to furnish the company with relevant and sufficient documentation which formed the basis of the final report dated June 26, 2016. This would be done to enable Ngwane Mills to make the declarations of the VAT.  The parties agreed there would be no penalties or any other amounts due by the respondents as a result of late declarations.

declared

“The parties agreed that the VAT once declared will be set-off against the applicant’s deferred VAT account to be claimed back in the months to follow,” agreed the parties.
Ngwane Mills previously lost the case at the High Court after Judge Maphanga dismissed its application to review and set aside the decision of the SRA general commissioner, in terms of which he determined that the company was liable to pay Valued Added Tax (VAT) together with additional penalties levied thereon,  amounting to the sum of E40 109 557.26.

In his judgment, Judge Maphanga stated there was no question that in terms of Section four of the VAT Act, the applicant (Ngwane Mills) also had an obligation or at the very least, also became liable to pay VAT on the non-declared wheat imports.
procurement
The court held that the applicant had an active interest in the goods throughout the process of procurement and as such, had a beneficial interest in the merchandise to qualify it as an importer and as such, also became liable for the payment of VAT.
Judge Maphanga said the applicant also failed to show that the SRA commission general exceeded his powers in making the determination.

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