Sars files urgent bid to oppose Bosasa business rescue application
Gavin Watson's family filed the application on Wednesday afternoon to stop the liquidation and the auctioneering of the company's possessions.
JOHANNESBURG - The South African Revenue Service (Sars) has on Thursday filed papers to oppose an urgent bid by the family of the late CEO Gavin Watson who want African Global Operations to be placed under business rescue.
Watson's family filed the application on Wednesday afternoon to stop the liquidation and the auctioneering of the company's possessions.
This was after a three-day auction of the company's assets began in Krugersdorp on Wednesday.
Sars said the corruption-ridden company owes over R500 million in tax penalties.
The assets of African Global Operations, formerly known as Bosasa, are being auctioned off in order to settle its debt.
The company featured prominently at the state capture commission as being complicit in tender fraud.
Sars is now opposing an application by the Watson family and its subsidiaries to be placed under business rescue.
Jared Watson is the nephew of the late Gavin Watson said: “We would contest the suggestion that Sars is the creditor of the business. However, either way, the auction of the company’s assets is the worth possible outcome for any creditor of the company current or potential.”
But Sars said it would take the necessary steps to intervene in the application.
It said its inquiry into the company's affairs in June revealed large scale tax evasion, amounting to over R500 million.