Sars’ R6m tax bill has ASA scrambling

The woes of Athletics SA (ASA) went from bad to worse this week after the beleaguered federation was slapped with a R6.2 million tax bill.

According to a leaked email from the SA Revenue Service (Sars), seen by City Press, the ASA owes R5 262 497.42 worth of VAT (from November last year to date) and R957 030.08 in pay as you earn tax since March last year. The total amount is R6 219 527.50.

This comes at a time when the ASA is frantically trying to rescue its headquarters from going under the hammer as a result of a long-standing legal battle with injured pole vaulter Jan Blignaut.

Blignaut won a R10.4 million default judgment against the ASA last year for severe injuries he suffered in a pole-vaulting accident in an ASA-sanctioned meeting in March 2009.

On Friday, ASA president Aleck Skhosana said the federation had delivered on its promise to settle the money with Blignaut.

Skhosana said the ASA paid the first instalment towards the athlete on Friday after missing the initial deadlines last week and on Tuesday.

However, Skhosana refused to be drawn into the tax matter, saying it was between the ASA and Sars.

“We won’t comment on tax issues, but our home won’t be auctioned because we paid today [Friday],” Skhosana told City Press.

“We were supposed to pay last week but our operations guys said there were technical glitches.”

He said the ASA would stick to their initial undertaking of settling the outstanding amount within three months, as per agreement with Blignaut’s lawyers earlier this month.

None of the parties has disclosed the figures, but Blignaut’s legal representative, Frikkie Jordaan, told City Press a few weeks ago the settlement was significantly lower than the R10.4 million the North Gauteng High Court granted Blignaut last September.

The ASA evaded the auction of its headquarters after the parties agreed to postpone the scheduled sale on May 7.

The postponement came after the ASA agreed to pay an undisclosed payment upfront and were duly granted a three-month grace period by Blignaut’s lawyers to settle the outstanding balance.

Failure to pay would have resulted in the athlete’s legal representatives proceeding with the sale in execution of the ASA’s immovable property.

Attempts by City Press to reach Jordaan failed. He did not respond to calls, emails and SMSes