Friday, September 30, 2011

Rates boycotts are illegal

Japie Bosch
Our Times, 30 September 2011

Municipal taxpayers should forget about withholding their taxes. In terms of legislation they will not get away with it.

So says Len Dekker, a Pretoria based expert on municipal legislation.

He was approached because increasingly more and more taxpayers in Jeffreys Bay are threatening to withhold their rates.

"Some of the questions one may ask supporters of rates boycotts are: will you stop paying income tax, because the windows of your child's school are broken?"

“Have you ever threatened to withhold income tax because of corruption in the government?"

He pointed out that outstanding municipal taxes only lapse after 30 years.

People who pay their taxes into a trust account, remain liable for their debts, plus interest to the municipality.

Unpaid service-charges for water, electricity and sewerage lapse after three years. 

Prof. Chimpie Cawood, DA leader in Kouga, was quoted last week as saying threats of withholding are growing, because of corruption in the municipality, dissatisfaction with service delivery and incompetence.

Louis Geldenhuys, chairman of the Federation of Kouga Ratepayers and Residents' Association (FEKRRA) said he had noticed the same tendency (residents considering withholding taxes.).

"Withholding rates has always been a consideration for FEKRRA, but the practical implementation will have to be determined."

Cawood emphasised that the DA does not support withholding taxes.

Dekker said, in terms of article 102 of the Municipal Systems Act, a municipality may implement any credit control measures.

He explained a person may declare a dispute over his utility account. "If a person usually pays R1 000 per month, and suddenly receives an account of R10 000, there is a reason to declare a dispute. It's an obvious error. Until this problem is solved, he does not have to pay anything more than the usual R1 000, and his water and electricity may not be cut off."

Asked about Sannieshof where taxpayers paid their municipal taxes into a trust account, and provided some services themselves, Dekker said: "It happened because a useless municipality was in power. Any municipality with a little backbone would not allow this to happen. Compare it to the Springbok’s win of 87-0 against a team which did not offer any resistance, as opposed to a game against the All Blacks, who beat us regularly."

The best method of solving a problem remains negotiation, says Dekker. "A successful negotiated settlement is always better than a protracted and expensive lawsuit."

“If you go to a court of law, the law must be on your side. By refusing to pay taxes you are on the wrong side of the law."

Hoe op aarde kan gewone belastingbetalers dan teen swak dienslewering protes aanteken?

The Courier - Die Koerier wonder of oom Jaap (Our Times, 30 September 2011) nie 'n punt beet het nie as hy sê dat wittes moet leer om protesoptogte te hou.

"Die storie het niks met ras te doen nie," skryf oom Jaap. "Dit gaan oor wittes wat nog nie by swartes geleer het nie. Húlle stap met baniere en plakkate. Dan ontbied hulle 'n grootbaas en stel hulle eise."

"Wat weerhou Jeffreysbaaiers om die burgemeester ook sy fortuin op dié manier te vertel?" vra hy.

Inderdaad. 

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