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ANA reports that South African Airways (SAA) has not paid over the income tax the company deducted from its employees to the SA Revenue Service (Sars).
It is therefore in breach of the bailout conditions imposed on it by the National Treasury, the Democratic Alliance (DA) pointed out on Tuesday. The stricken airline's failure to pay over the taxes emerged in a report to Parliament's committee on appropriations. The DA's spokesperson on appropriations, Ashor Sarupen, said withholding staff PAYE deductions flouted a clear condition imposed on the airline last year in return for continued public funding. He noted that the report to the appropriations committee made clear that the airline's business rescue practitioners (BRPs) were withholding staff's deductions as a means to weather SAA's liquidity crisis. Sarupen remarked that this meant that employees of SAA were now in a position where their taxes had been deducted from their salaries but they could not be considered tax compliant, on top of which they were likely to lose their jobs and income. The government has turned down a request from the business rescue team at SAA for further funding to the tune of R10-billion.
- Read the full original of the report in the above regard at Engineering News
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