UPDATE: Teflon Two stick it to SARS

Durban’s Teflon Two, S’bu and Shauwn Mpisane, who owe the taxman more than R203 million, are once again set to oppose SARS’s attachment of their homes, farms, luxury vehicles, businesses and trust fund. 

The couple’s assets were attached in November last year.  The case was meant to be heard in March but has now been postponed sine die (indefinitely).

S'bu and Shauwn Mpisane

SARS attached their goods on the basis that the Mpisanes were “dissipating” their assets and had “frustrated SARS” in its ability to collect taxes effectively. This included offloading assets into a newly formed trust and setting up front companies to transfer assets out of indebted companies.

The tax authority also felt it had been conned by the couple who, when unable to get a tax-clearance certificate for their flagship company Zikhulise Cleaning Maintenance & Trading (ZCMT), created a new entity under a similar-sounding name, Zikhulise Group, which had a clean tax bill of health. This was in order to qualify for more – often dubious – multi-million-rand government construction contracts while using their existing infrastructure.

“The legality of this conduct is questionable,” SARS contended in founding papers.

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