Once upon a time, in the land of South Africa, there lived a businesswoman named Shauwn Mkhize. She was the owner of Royal AM FC, a prestigious football club. However, her success was overshadowed by a dark cloud of financial troubles.
Shauwn Mkhize found herself in the crosshairs of the South African Revenue Service (Sars) due to outstanding tax payments amounting to a staggering R50m. Sars obtained a civil judgment and writ of execution against her, leading to the court ordering the sheriff to attach and remove her movable assets. The municipality of Msunduzi, which had recently approved a R27m sponsorship for Royal AM FC, now found itself in a dilemma. They sought legal opinion on whether they should proceed with the sponsorship in light of the court's tax orders.
Meanwhile, in Kenya, a trader faced a similar fate. The High Court denied his request to access Sh9.1 million of the more than Sh53 million that had been frozen in August over suspicion of being proceeds of crime. The court also rejected his application to lift the freeze order on his two high-end motor vehicles. The judge believed that the trader had not demonstrated enough hardship as a result of the freeze order and that the risk of losing or transferring the funds and assets outweighed the potential hardship.
Both Shauwn Mkhize and the trader argued against the freeze orders, claiming that they had not been shown any evidence of criminal activity. They both faced the consequences of their financial struggles, with Shauwn Mkhize potentially facing prosecution and the trader's business and reputation being affected.
In South Africa, proposed changes to economic crime laws related to attachment orders, asset freezes, and confiscation orders have divided legal experts' opinions. The changes, introduced through Bill 76 by Justice Minister Jonathan Attard, aim to introduce proportionality in freezing orders for suspected financial criminals. Some experts see the changes as an escape route for accused individuals, while others view them as a shift in balance favoring the accused. The most significant change is that the prosecution will be required to identify specific assets to be frozen instead of a blanket freeze. Critics argue that this change may make it harder to link assets to specific crimes and hinder the fight against money laundering. However, supporters of the changes believe they are long overdue and will bring South African legislation in line with international standards.
In Kenya, the High Court's decision to deny the trader's request for access to frozen funds and assets highlights the challenges faced by individuals caught in the web of asset freezes. The court's reasoning, based on the trader's inability to demonstrate sufficient hardship and the risk of losing or transferring the funds and assets, reflects the current legal landscape. The trader, like Shauwn Mkhize, argued against the freeze order, claiming a lack of evidence of criminal activity.
In Liberia, Chief Imam Ali Krayee has called for the reconstitution of the government Asset Recovery Taskforce, criticizing the current composition as a mockery. He urged the government to bring on board eminent citizens with a passion for retrieving the country's stolen assets. The Assets Recovery and Property Retrieval Taskforce, set up by President Joseph Nyuma Boakai, recently said its intelligence points to former Chief of Protocol Finda Bondo being the owner of the fleet of 'Glorious Ride' taxis, which is being tested in court. The Supreme Court Justice in Chambers, Yussif D. Kaba, declined to grant a request by Gracious Ride to prevent the Asset Recovery and Property Retrieval team from impounding its legitimate vehicles. Justice Kaba ordered the task force to proceed in line with the law. A five-day ultimatum was given to Gracious Ride to present their ownership documents for the vehicles. The Glorious Ride vehicles and several vehicles belonging to the former Police IG Patrick Sudue were impounded by the Asset Recovery and Property Retrieval team. The Executive Director of CENTAL, Anderson Miamen, suggested that the funds be directed to the Asset Recovery Unit at the LACC and that the task force should be led by the Liberia Anti-Corruption Commission.
In Argentina, federal judge Sebastián Casanello has ordered the freezing of the assets of Polo Obrero leader Eduardo Belliboni, who is under investigation for alleged welfare fraud and embezzlement. The move is part of a government clampdown on welfare fraud and the 'business of poverty'. Belliboni, along with some 20 leaders of soup kitchens and social movements, will appear before Casanello in June. The government alleges that only 30 percent of the 360 million pesos placed into Polo Obrero's hands between 2020 and 2023 were properly accounted for. Polo Obrero claims that the funds were fully accounted for to the Social Development Ministry. Belliboni considers the case to be a smokescreen to hide the collapsing economy and job losses. He plans to file a complaint against the authorities' holding up of food aid in warehouses. A demonstration was held in front of a warehouse where the food is stored in Buenos Aires.
In the United States, Michael Jackson's family has been temporarily cut off from his trust account by the Internal Revenue Service (IRS). The IRS issued a note of deficiency following a tax audit, claiming that the estate undervalued its assets and owed $700 million in taxes and penalties. Although the estate won its case in 2021, it has filed a motion for the value of Michael Jackson's back catalogue to be reconsidered. As a result, the beneficiaries of the trust, including Michael Jackson's children and mother, Prince, Paris, Bigi Jackson, and Katherine, cannot receive funds until the value of the estate for tax purposes is finalized. The estate has suggested that the beneficiaries receive funds through the family allowance. Katherine Jackson has been in a legal battle with the estate, trying to block a business deal believed to be the sale of the catalogue. In response, Bigi Jackson has filed legal papers against his grandmother to block her from using estate funds.
In West Virginia, dozens of tracts owned by branches of Governor Jim Justice's family business network have been up for auction this month in counties due to unpaid property taxes. A total of 652 parcels valued at $338,385 are up for sale in the three county auctions. Raleigh County has the highest number of Justice tracts up for auction, with 499 properties sold for $783,396. Last year, nearly 100 lots owned by James C. Justice were sold at public auction for $75,000 due to delinquent property taxes in McDowell and Raleigh counties. State law allows for a 120-day title search by the purchaser and a minimum of 150 days before the Auditor's Office can issue a deed. The property can be redeemed until the deed is recorded in the County Clerk's office. [ba802687]
In the Philippines, Maria Ressa and Rappler Holdings Corp. have been cleared of tax evasion charges by the Court of Tax Appeals (CTA). The CTA's Second Division upheld the acquittal of Ressa and Rappler, dismissing the petition for certiorari filed by the Office of the Solicitor General. The petition sought to reverse the decision of the Pasig City Regional Trial Court, which cleared Ressa and Rappler of tax evasion. The tax court found no grave abuse of discretion on the part of the presiding judge and stated that a writ of certiorari is only granted to correct errors of jurisdiction, not errors in the findings and conclusions of the trial court. This ruling marks the end of the tax cases against Ressa and Rappler, providing them with legal vindication.
The clearance of Maria Ressa and Rappler in their last tax evasion case highlights the importance of a fair and impartial judicial system. The ruling affirms their innocence and reinforces the principle that individuals should be held accountable based on evidence and due process. It also serves as a reminder of the challenges faced by journalists and media organizations in the Philippines, where press freedom is often under threat. Despite the clearance, Ressa and Rappler continue to face other legal battles and scrutiny from the government.
Overall, the stories of individuals and organizations facing tax-related issues and legal battles demonstrate the complexities and consequences of financial struggles and allegations of wrongdoing. From South Africa to the Philippines, Kenya to Argentina, and even in the United States, the pursuit of justice and the resolution of tax-related disputes remain ongoing challenges in different parts of the world.