In a footnote to it’s recent A$21 million tax claim against businessman Mark Krok (see my earlier blog “South African Emigre’s Offshore Tax Plan Falls Foul of Australian Tax Office’s Aggressive Audit Approach“, the ATO has reportedly seized A$2.85 million from his accounts with Australia’s St George Bank.
Furthermore, it has requested that SARS freeze his shares in South African companies as well as his A$4 million house.
The request to SARS appears to have been made under Article 25A of South Africa’s double tax treaty with Australia which was updated by a Protocol in 2008. This Article provides for SARS to collect the Australian tax as if it was a South African revenue debt.
It should be noted that the Australian tax debt is disputed by Mr. Krok and his legal appeals against the underlying assessments are yet to be heard by the Australian Federal Court.
Director Principal of Rollo & Company Pty Ltd, a CPA practice that specialises in Australian & international tax, estate and succession planning, professional education, negotiation and mediation, mentoring – executive coaching, and higher education consulting. We also provide the Student Ombudsman Service at Macquarie University in Sydney.
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