SA boxer owes SARS R400 000

2011-07-13 10:44

Johannesburg -  Former six-time world champion boxer Cassius Baloyi says he is shocked at revelations that he owes the South African Revenue Service about R400 000 in taxes, reports the Sowetan.

Baloyi a six-time world champion in three different weight divisions told Sowetan he was informed by the taxman that he owed about R400 000.

"They said I did not return my IRP5 forms for the years 2005, 2006, 2007 and 2008," Baloyi said on Tuesday.

"I am shocked and disappointed because Boxing SA deducted 25 percent tax from my purse money every time I fought over these years.

"So I have always been under the false impression that I'm up to date with my taxes."

Baloyi said he did not get his IRP5 forms from BSA, which was supposed to issue them to the fighter as proof that his tax had been paid on his behalf.

"I discovered that I owed taxes when I tried to submit my IRP5 forms for the years 2009 and 2010," explained Baloyi, who fought twice in 2009 and once last year.

Baloyi's lawyers sent a letter to Boxing SA chairperson Peter Ngatane on April 28 and requested a reply regarding Baloyi's tax issue within seven days. They have not received a reply.

However, Ngatane said on Tuesday: "I'm surprised that he says he did not receive his IRP5 forms and that he owes money. It is easy to blame BSA when the responsibility of your taxes lies with you as a professional ."


  • Hugh - 2011-07-13 11:12

    Yeah yeah we know the story. Easy when you write to law that in effect you know everything about. Never inform the tax payer of his rights in terms of that law. The top that off with an exagerated claim for which SARS refuses to provide proof because yet again he wrote the law that says the burden of proofing he is wrong yours. Where on earth the citzen in the street gets the money to correctly defend himself is impossible to say.

      Tonsil - 2011-07-13 12:07

      @Hugh What????????

      Mishka - 2011-07-13 12:25

      Clearly Hugh comes from the boxing ring and one of the really tough fights have left him unable to string together a sentence which makes sense.

      DeonL - 2011-07-13 13:03

      He should have known better when filling his tax returns. Another celebrity caught out by the tax man, fear not he is in good company: Wesley Snipes is in jail for 3 years for tax evasion.

      Rajty - 2011-07-13 13:12

      Yes Deon- this is the same- you know Wesley Snipes is in Americ- I fear for the IQ's of some of these bloggers- how stupid can you get....are tax laws the same in the US as they are here????

      Goofster - 2011-07-13 13:17

      Couldn't have said it better myself, Hugh..........after half a bottle of Jack Daniels that is.

      Sparxi - 2011-07-13 13:36

      @Hugh- What is so hard to understand: You earn income, you probably need to declare to SARS and you may need to pay tax on that income. Everyone know this and by Baloyi's statement so did he. He simply seems to be saying that he thought the BSA deduction was for that purpose. That being said, ignorance of the law is generally not a valid excuse, in any court of law.

      PunkBuster - 2011-07-13 13:45

      Mishka - I know a couple guys that have taken up boxing seriously. These are not smartest guys on the planet. So Baloyi, I suggest you pay someone to do your tax for you.

      DW - 2011-07-13 16:01

      By law SARS has to provide proof of any money they are claiming from you - they have to give you the calculation. Ask for it. You are within your rights to do so. If SARS does not give you the service that they should (remember to ask for reference numbers every time you request SARS to fix something or give you information on your tax affairs), send the details to SSMO (SARS Service Monitoring Office) and report it. They are very good at getting results and they report directly to the minister.

      DeonL - 2011-07-13 16:14

      Rajty, Tax laws are not the same all over the world, but tax evasion is all over the world a criminal offense.

      daaivarksetier - 2011-07-14 07:28

      Go to SARS and M@#$ them put a fist to their Cheeks and M@#$ them, Yes M@#$ Them All, with a fist to the Cheek! - 2011-07-14 08:15

      @Mishka: superLOL. I agree with you 100%

      Dan - 2011-07-14 09:21

      Why is he only paying 25% tax?

      Gibbonater - 2011-07-14 09:25

      Sound like Hugh have taken to many blows to the head. HA HA HA HA HA.

  • DMMA - 2011-07-13 11:17

    Actually BIKO..this just shows how useless SARS have become. Instead of being "AT YOUR SERVICE" by notifying Mr Baloyi that his returns were not up to date ..they remained still while adding penalties & interest and additional Tax to his balance. The problem is that SARS are on a witch hunt to accumulate as much tax through penalties etc from uneducated taxpayers ...saying that...most of the staff at SARS are uneducated and unable to help the VOLUMES of ordinary taxpayers that are standing in lines for days to sort out their taxes.

      MissGremlinSays - 2011-07-13 11:31

      Yep, can't argue there. Their latest bullsh*t story is you need to call them every month to have them send a vat form. WTF. It's their stuffing job to send the form, so that you can fill it in and pay your due. Why do we have to beg them to do their damn job? No notice to say your return is still outstanding - sod all, just sit quietly and let the penalties add up. To add insult to injury, you prove them wrong, and you have a battle of note to try and have the penalties and interest reversed. What feckers!

      Antonio Ashley Morientes - 2011-07-13 11:35

      Couldn't agree with ya more!

      Rajty - 2011-07-13 13:12

      When did they become useless DMMA- you whites are whinners

      Andy49 - 2011-07-13 13:21

      @Rajty - btw there is no 'H' in WINNERS

      DW - 2011-07-13 16:04

      DMMA - SARS runs well (most of the offices) but if you dont let them know that you have moved house and have a new address, they cannot contact you and then you WILL be charged interest and penalties. We all know that our tax returns are due every year. Its advertised in the press, on tv and on the radio. If you have not received your tax return it is your duty to contact SARS and ask him why. Dont think it will just go away because it wont. And when he catches up with you (which he will) you will sit with this situation.

      DW - 2011-07-13 16:05

      Miss Gremlin - register on SARS e-filing and you can request it online and it will be issued straight away. Save yourself the headache.

      DeonL - 2011-07-13 16:27

      I agree Sars is getting worse but e filing does help.

  • FaxM8 Fax - 2011-07-13 11:17

    Hey you need to pay your share , malema is building a new mansion 400 K should cover the fence !

      Dan - 2011-07-14 09:23

      Love to see poor man Malema's tax returns. Wonder if SARS are also monitoring that bastard.

  • bill - 2011-07-13 11:23

    hau , what is this tax return thing?

      Antonio Ashley Morientes - 2011-07-13 11:33

      You must be un employed Bill.

      zoro - 2011-07-13 16:38

      Its nothing, don't worry about it : )

      StalkSweet - 2011-07-14 12:46

      You surely don't pay it as well

  • Civil_Rights - 2011-07-13 11:26

    For the former six-time world champion boxer Cassius Baloyi, that must be a real low Blow.

  • Civil_Rights - 2011-07-13 11:27

    I think Cassius Baloyi should take the matter up with SARS and Malema in the Ring.

  • freddie van eyk - 2011-07-13 11:40

    SARS seems to be the most efficient government department , wish the whole place was run by them.

      gcr - 2011-07-13 12:33

      You obviously have not dealt with SARS often - they are not as efficient as they let on that they are

      DW - 2011-07-13 16:06

      gcr - you have recourse if they dont do what they are supposed to. Make sure that you have the reference numbers where you have tried to get your problem sorted out, and report it to SSMO

      Mr D - 2011-07-14 05:43

      Tog so waar Freddie. for the rest; Pay ur taxes and shutup and SARS will leave u alone.

  • Tomas - 2011-07-13 11:41

    It is standard practice to deduct only 25% when you earn commission. Mr Baloyi should have hired the help of a tax accountant, who would have advised him firstly to get a directive from SARS, ordering Boxing SA to deduct more, and secondly, he should have filed an IT12 tax return every year (which is required by law if you earn commission). Because he earns multiple incomes, he probably falls in a much higher tax bracket than 25% (probably 37%), so the R400,000 is in fact the difference between the 37% he should have paid and the 25% he did pay! Blaming Boxing SA will get him nowhere, because even if they did not issue him with an IRP5, all his IRP5 detail would probably already have been loaded on his eFiling profile! Which he would have noticed, had he done the right thing, and file a tax return!

      Sparxi - 2011-07-13 13:32

      Not everyone is registered for eFiling...

      mursebul - 2011-07-13 14:51

      It is Boxing SA we talking about here, they too should be looked at, not to mention the trainers and the side bets they make and not declare profits thereof, I know one Ralph Heyns made millions in that fashion in the US, and how the heck did a convict get a clearance to enter the US?

      DW - 2011-07-13 16:09

      Tomas, it sounds like the lack of information was for 2005/2006/2007/2008 - in those years the information was not preloaded onto your tax return. If I remember correctly it has only been since 2009 that this is being done. But the rest of your information is correct

  • Cas - 2011-07-13 12:03

    My Empoyer deduct tax every month, but still I file every year. My point, thats a stupid excuse Cassius. You always have to file every time, irrespective whether Boxing SA deduct tax. That is why, for someone who is a sportman and making a lot of money, you need an Accountant to help u manage taxes and your finances in general. I dont earn that much, but I have an Accountant, whom every year during the tax period, he files my taxes and takes commision based on my returns. SIMPLE you MORON...

  • Daemos1 - 2011-07-13 12:32

    Yet another athlete to cheap to hire an accountant to manage his winnings, you pay for your apathy.

  • Marcus Westin - 2011-07-13 13:13

    He cannot just pay 25% of tax. There is a sliding scale of tax that goes up to 40% depending on how much you earn. And he probably earns quite a lot! I am certain that SARS is correct in this instance. Wish SARS could be just as strict with certain other individuals in this country who tries to evade taxes.

  • zane.blignaut - 2011-07-13 13:14

    Lets be honest! when you choose to become a pro boxer, It usually is due to the fact that intellectually you cant compete. So I don't blame the boxer, but the "people" that were looking after his interests.. the leeches that were around while the money was flowing... I feel sorry for the guy, as I believe he honestly was unaware and under a different impression.

      DW - 2011-07-13 16:10

      Agreed, zane, but unfortunately ignorance of the law is not an excuse and he will not get away with it.

  • McDaNife - 2011-07-13 13:21

    You cant play with the taxman, he will eventually get to you. Your responsibility to get your forms to them. Taxman hold at no favours so spend some time behind bars.

  • clivegoss - 2011-07-13 13:43

    Guess who needs to get "bliksemed" Not Baloyi. He has done the hard time. BSA needs to show where 25% of the purse went ! ! Skelm donners.

      DeonL - 2011-07-13 16:41

      Hope he can find the IRP5's, but high earners like him can pay up to 40%, so he might still have to pay in some money.

  • Jason - 2011-07-13 14:53

    must pay his share,could go as payment on the next luxury hotel visit from you know who

  • Fredster69 - 2011-07-13 15:19

    Fight for it...

  • Hugh - 2011-07-13 15:39

    LOL Sorry about that people I wrote the note in a hurry then pressed post Comment icon in error when I did a copy and paste. To late by then. Buggered if I was going to write it all again because I knew that the error would be found and commented upon before the rewrite. I now return to appreciate your predictable comments.

  • DW - 2011-07-13 15:58

    The IRP5 is received from the employer showing that the tax has been paid. However you still need to submit IT12 forms to SARS every year declaring the income for the year so that a final assessment can be done. Just because your employer has taken the taxes off your income (especially when they only do a fixed %) does not mean that your taxes are up to date. SARS looks at all your income for the year (salary, commission, rent received, interest, pension fund payouts etc) adds them all together and comes up with a final number. If you do not submit your IT12 SARS will charge you penalties and interest etc. Dont submit late. They will catch up with you. This is one government department which runs well and has top quality employees who are paid commissions for catching people out. It is not worth trying to cheat the tax man. You can end up paying triple tax plus interest and penalties and could also end up with a criminal record.

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