MP says DA would ensure that emerging SMMEs would get all the advice and support they need to flourish and be tax compliant
SMMEs should be assisted to be tax-compliant, not given a free pass
8 August 2024
The Democratic Alliance (DA) notes a series of extraordinary posts on X (formerly Twitter) by the Gauteng MEC for Economic Development, Lebogang Maile, regarding the tax status of a single business, Drip Group (Pty) Ltd. This business is facing liquidation, apparently due to not being tax-compliant. Contrary to what he claims in his posts, which go to significant length, he is making a public plea to the South African Reserve Bank (SARB) to save one single business.
The MEC is the executive authority for a government agency called the Gauteng Enterprise Propeller (GEP), which is responsible for providing financial advice to businesses. This would include the need to seek tax advice and direct businesses where to get assistance to keep their tax affairs in order.
In Maile’s posts, he questions a process that he describes as “punitive.” We agree with him when he says that the investigative process should not take as long as two years. Indeed, the DA is also concerned about the plight faced by this company as well as many other small businesses. While we also want clarity on whether SARB invoked a sudden death liquidation or offered alternative arrangement, we do not believe that the answer must be the cancellation of a tax debt.
This week I have asked the Chairperson of the Gauteng Provincial Legislature’s Economic Development Committee to call the MEC to account for this matter. The Committee should seek the full facts and determine the following:
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