‘Zuma must pay R63 million in fringe benefits tax for Nkandla’: DA

Party leader Mmusi Maimane quoted the minister of finance as saying “all South Africans pay tax on their income and fringe benefits‚ be the person the president or an ordinary worker”.

“Therefore‚ Jacob Zuma is liable by law to pay any tax benefits personally amassed in relation to the luxurious updates at his Nkandla homestead‚” said Maimane.

“While National Treasury has determined‚ in line with the Constitutional Court's ruling‚ that R7.8-million is an amount of the costs to be personally paid by Zuma for the over-inflated R246-million project of corruption‚ this is not the only amount that Zuma should pay to the people of South Africa.”

Maimane said that Zuma’s own words – “they did this without telling me - why should I pay for something I did not ask for?” – will come back to haunt him as the Income Tax Act “defines a fringe benefit as…a taxable benefit …whether the grant of such benefit is voluntary or otherwise”.

He went on to say that “Zuma is liable for income tax on the full value of the improvements made to his Nkandla home”.

“On studying and evaluating the full list of upgrades‚ we found that the total taxable fringe benefit amounted to R145 185 235‚ which taxed at the applicable marginal rate of 40% would amount to R 58 074 094. When this is added to 10% penalty for late payment‚ of R 5 807 409‚ we arrive at the total payable figure of R 63 881 503‚” he said. “But that’s not the end of it. In addition to this amount there would be interest payable from the date that the tax became due and payable.

“President Zuma must at once pay the tax that is due‚ and pay it personally. South Africans cannot continue to suffer while Jacob Zuma has lined his pockets with public money destined for the advancement of our country.”