Times Of Swaziland: NGWANE MILLS TO PAY SRA E10.5M

NGWANE MILLS TO PAY SRA E10.5M
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 BY MBONGISENI NDZIMANDZE  AND KWANELE DHLADHLA  on 19/03/2019 07:28:00


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.