Blow to rates boycott

David MacGregor
PE Herald, 8 December 2011

Sunshine Coast residents who have been withholding rates payments could be without water and lights this Christmas after a court decision which allows a municipality to cut supplies to defaulters.

Ndlambe Action Group (NAG) chairman Derek Victor yesterday played down the possibility of his 300 supporters facing a dark and dry December.

But DA MP Annette Lovemore warned the Supreme Court of Appeal judgment set a precedent when it came to withholding municipal rates. Read more ...

RELATED POSTS IN THE COURIER - DIE KOERIER

To pay or not to pay

Supreme Court of Appeal rules on non-payment of municipal rates and taxes 

Rates boycotts are illegal

Jou krag mag nie af

To pay or not to pay …

On 4 December The Courier – Die Koerier carried a report under the heading, Supreme Court of Appeal rules on non-payment of municipal rates and taxes.

The report stated that the Association of Democratic Alliance Councillors (ADAC) had given details of the judgment of the Supreme Court of Appeal in the matter of Olga Rademan v Moqhaka Municipality, which deals with the powers of a municipality to discontinue the supply of electricity to payment defaulters.

The following is a further extract from the judgment that was delivered by Judge of Appeal T O Bosielo on 1 December 2011:

“The central dispute in this matter is whether the municipality was justified in disconnecting the electricity supply to the appellant whilst her account for electricity was up to date. The answer to this question is to be found in Section 102 of the Municipal Systems Act, which provides:

‘A municipality may

(a)   consolidate any separate accounts of persons liable for payments to the municipality;

(b)  credit a payment by such a person against any account of that person; and

(c)   implement any of the debt collection and credit control measures provided for … in relation to any arrears of any of the accounts of such a person.’

This section makes it clear that in pursuit of its obligation to charge and receive payments for municipal services, a municipality has the option to consolidate the accounts for various services it provides. This is intended to circumvent the very problem confronting us in this appeal, that is, allowing residents to choose which account the wish to pay and which they will not pay.”

The appeal was dismissed with costs.

RELATED POSTS IN THE COURIER - DIE KOERIER

Supreme Court of Appeal rules on non-payment of municipal rates and taxes 

Rates boycotts are illegal

Jou krag mag nie af

Supreme Court of Appeal rules on non-payment of municipal rates and taxes

The Association of Democratic Alliance Councillors (ADAC) has given details of the judgment of the Supreme Court of Appeal in the matter of Olga Rademan v Moqhaka Municipality, which deal with the powers of a municipality to discontinue the supply of electricity to payment defaulters.

The following is an extract from the judgment, which was delivered by Judge of Appeal T O Bosielo on 1 December 2011:

“As a means of getting the respondent [Moqhaka Municipality] to attend to their various complaints, which alleged poor service delivery, they [the appellants] decided to withhold payments of their rates and taxes. However, they continued to pay for their other municipal services like water and sanitation, electricity and refuse removal.

Notwithstanding various demands for payment, the appellant persisted in her refusal to pay taxes and levies. Inevitably, this impasse culminated in the respondent discontinuing any further supply of electricity to her."

The court ruled that the respondent [Moqhaka Municipality] was justified in disconnecting the appellant's electricity supply - without a court order.

The appeal was dismissed with costs.

RELATED POST IN THE COURIER - DIE KOERIER

Jou krag mag nie af

Jou krag mág nie af

Jani Meyer

Beeld, 1 Desember 2011

Dit is onwettig vir munisipaliteite om dienste soos water en elektrisiteit op te skort as ’n inwoner se eiendomsbelasting agterstallig is.

Dit is ook onwettig om elektrisiteitstoevoer af te sny as ’n dispuut oor ’n rekening verklaar is en dit nog nie opgelos is nie. Lees verder ...

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.