King firm withdraws appeal, faces R2.3bn tax

[ian1964 10,486]

Ben Nevis, an offshore entity owned by an offshore trust of Dave King, has withdrawn its intention to appeal against a Tax Court judgment and will have to cough up R2.3-billion in unpaid taxes, interest and penalties.

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King, one of SA's most controversial and richest businessmen, and the SA Revenue Service (SARS) have had a marathon legal battle over unpaid taxes.

 

The amount owed includes 200% penalties and springs from tax assessments for 1998, 1999 and 2000, according to papers in the North Gauteng High Court.

 

According to the judgment, most of the profits were from the sale of King's shares in Specialised Outsourcing, a company founded by King. It saw phenomenal increases in its share price. But the price tanked when it came to light King had sold his shares. Directors were not obliged to disclose transactions then.

 

If SARS manages to raise the money from King's entities, it would be significantly more than the R636-million the parties proposed to settle on in 2009.

 

SARS would not comment on how or whether it would proceed to recover the amount owed by Ben Nevis. It is unclear if sufficient assets remain to cover the tax bill.

 

King, who rejoined JSE-listed MicroMega, a company he founded and in which he holds a significant stake, as chairman in January, told Business Times at the time that he is "not involved at all" with Ben Nevis, which is managed by trustees.

 

The Tax Court judgment, however, found otherwise.

 

"Although he was not an officer of the appellant and he held no other formal position which would normally entitle him to act on its behalf, he clearly controlled the appellant as if he was its managing director and was acting with all the powers of the board," read the judgment which also states that King is "a glib and shameless liar".

 

The judgment was filed as part of an application brought by SARS to attach cash of held by Metlika, another offshore King-related entity.

 

 

http://www.timeslive.co.za/business/article909618.ece/King-firm-withdraws-appeal-faces-R2.3bn-tax

[Frankie 8,198]

Which equals around �£200million....

 

I think we can rule him out of buying Rangers if that figure is correct. Of course, could be likely that he settles for much less.

[maineflyer 0]

It almost certainly signals a deal behind the scenes, with a settlement well below the judgement being agreed. This could well rule King in rather than out but not as a main player I fear. Time will tell and the speed things are going there looks to be plenty of time. It's always vaguely possible of course that a deal has been waiting on just this news?

[Frankie 8,198]

It almost certainly signals a deal behind the scenes, with a settlement well below the judgement being agreed. This could well rule King in rather than out but not as a main player I fear. Time will tell and the speed things are going there looks to be plenty of time. It's always vaguely possible of course that a deal has been waiting on just this news?

 

It does appear from the outside looking in that obstacles are being removed elsewhere which could precipitate the removal of the biggest obstacle of all.

 

As ever only time will tell.

[pete 2,499]

Whyte and King teaming up would be a nice prospect although probably one cook too many in the kitchen.

[Zappa 0]

Really not sure that I'd be comfortable with King taking over anyway.

[Totti 0]

At least Murray isn't a convicted crook ffs

 

How about we get someone who isn't a complete dodgy bastard.

 

Oops, drinking and ranting again

[Guest puk]

Cousin in Jo'burg says Kings people were left in no doubt that if appeal went against them, jail time would be sought by the prosecutors, as much as 15 years, I guess it would help focus the mind.

[ian1964 10,486]

Rangers director Dave King has been hit with a �£250million bill after he lost a 10-year battle with the taxman.

 

A company run by the Scot have dropped their appeal against a South African court which branded King, a "shameless liar" and ruled the firm were liable for the huge unpaid sum.

 

Now proceedings are under way to collect the vast debt - and the 55-year-old tycoon is still at risk of being jailed for fraud.

 

Lifelong Gers fan King, from Castlemilk, Glasgow, arrived in South Africa in 1976 with only �£10 in his pocket.

 

He turned the pittance into a �£200million fortune as a high-powered financial consultant.

 

King bought three houses in Johannesburg's plushest suburb - then bulldozed them to build a mansion.

 

He also had a seaside holiday home, a �£165,000 Ferrari, �£64,000 Mercedes-Benz and two private jets worth �£14 million.

 

King also bought up vineyards and, along with golf legend pal Gary Player, ploughed �£1 million into a stud farm.

 

But the South African Revenue Service were puzzled when the tycoon claimed to be earning only �£5000 a year. In 2002, following a two-year probe, they hit him with a bill for �£200million in back taxes - insisting he was in fact the richest man in the country.

 

The total has now grown with interest and penalties added on.

 

King's defence was that nearly everything he had was owned by an offshore company called Ben Nevis, who are registered in the Channel Islands.

 

He even told SARS officials his watch and golf clubs were the property of the investment house and maintained the firm were run by a group of trustees.

 

But investigators uncovered a tortuous paper trail which led to the Caribbean, the island of Guernsey and then Scotland.

 

In 2006, South African prosecutors won court orders freezing assets including three million shares in Murray Sports - who owned a third of Rangers - and a house where King's mother lives.

 

An appeal against the bulk of the tax debt was dismissed last October. In a devastating judgment, the court said King "has no respect for the truth and does not hesitate to lie ... if he thinks it will be to his advantage.

 

"He is a mendacious witness whose evidence should not be accepted on any issue unless it is supported by objective evidence.

 

"In our assessment he is a glib and shameless liar."

 

On Friday, a hearing in Pretoria was told a further legal challenge by Ben Nevis had now been dropped. A SARS spokesman said: "This development means that certain facts are now uncontested and it entitles us to move on to the next stage, which is to claim the amount which is outstanding."

 

King also faces more than 300 criminal charges including fraud, money-laundering and racketeering - all of which he strenuously denies.

 

He is awaiting a judgment in May as to whether they should be dropped because of the time it has taken to pursue the case.

 

King is also fighting a personal tax claim of around �£80 million.

 

He was unavailable for comment last night.

 

King joined the Ibrox board in 2004 and owns around five per cent of the club.

 

Rangers have debt s of �£27 million but that figure could more than double if they lose their own battle with the taxman. over payments to players.

 

A bid by tycoon Craig Whyte to buy out Sir David Murray's majority shareholding had faltered but is said to be back on track.

 

http://www.dailyrecord.co.uk/2011/02/15/rangers-director-dave-king-hit-by-250m-tax-bill-after-losing-tax-battle-86908-22924641/

[Guest irritated23]

 

In a devastating judgment, the court said King "has no respect for the truth and does not hesitate to lie ... if he thinks it will be to his advantage.

 

"He is a mendacious witness whose evidence should not be accepted on any issue unless it is supported by objective evidence.

 

"In our assessment he is a glib and shameless liar."

 

 

Maybe I'm being over-sensitive but do we want someone of that description owning the club? It's all very well wanting rid of Murray but it won't do us any good if we wake up the morning after to realise we've replaced one dictator with another.