Bikini model says SARS ruined her life

The Free Radical

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Lebanon’s prime minister Saad Hariri gifted South African model Candice van der Merwe more than $16 million after they met in the Seychelles, the New York Times reported this week based on court documents.
Van der Merwe has been involved in a drawn-out legal battle with the South African Revenue Service (Sars) over a “donation” of $15.3 million (roughly R150 million at the time) she received from Hariri in 2013.
At the time, Van der Merwe didn’t disclose Hariri’s identity, and mentioned her benefactor’s assistant Mahomed Rawas was responsible for the donation, the Mail & Guardian reported.


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ForceFate

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She should've jist paid SARS. All of this wouldn't be in the papers. Now everyone knows she's a proz or a "model".
 

dualmeister

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Well Donations taxes are payable.
The first R200K is not counted. Then 20% on the rest.
So she owes them R150 000 000 - R 200 000 = R 149 800 000
20% tax = R29 960 000
Pay up lady :D
 

mr_norris

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From the Business Insider article:

In 2018 court papers, Van der Merwe blamed Sars for ending her relationship with Hariri, which she said she could’ve still derived financial benefit from.

I don't understand how? Given that Saad's companies started to tank, surely she should have sued him for loss of income instead?
 

mr_norris

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I found the answer from the nytimes article.

She also says the court cases and related publicity had caused irreparable damage to her career and severed her link to Mr. Hariri.
 

deweyzeph

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Well Donations taxes are payable.
The first R200K is not counted. Then 20% on the rest.
So she owes them R150 000 000 - R 200 000 = R 149 800 000
20% tax = R29 960 000
Pay up lady:D

Actually the donations exemption is R100k per year, not R200k. Also the rate is 20% up to R30 million, and then 25% of however much exceeds R30 million.

The argument that she has put forward is that the money was a gift and not a donation and therefore is not subject to donations tax. Alternatively another argument is that if it was a donation then it was donated by a non-resident and donations by non-residents to residents do not attract donations tax.

 

F1 Fan

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Actually the donations exemption is R100k per year, not R200k. Also the rate is 20% up to R30 million, and then 25% of however much exceeds R30 million.

The argument that she has put forward is that the money was a gift and not a donation and therefore is not subject to donations tax. Alternatively another argument is that if it was a donation then it was donated by non-resident and donations by non-residents to residents do not attract donations tax.



This is my understanding as well. My take is that she does not owe SARS anything, and it was gifted/donated by a non-resident.

She should've rather gotten the payment on paypal or bitcoin instead.
 
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