Johannesburg – Television production company Red Pepper Pictures has been peppered with just under R10-million bill by the taxman.
Red Pepper Pictures’ tax bill came to the fore when the South African Revenue Service (SARS) obtained a default judgment against the company at the Joburg High Court on Thursday last week.
The company owed SARS over R986 000 in unpaid company income tax.
But the amount ballooned to over R1.1-million after the interest of more than R127 000 and R45 000 in penalties were levied to the debt.
Red Pepper Pictures also owed SARS over R2.6-million in unpaid value-added tax but the amount increased to just under R3-million after more than R68 000 in penalties and R217 000 in interest were imposed on the debt.
The company also owed the taxman just under R300 000 in unpaid unemployment insurance fund but the amount skyrocketed to over R365 000 after more than R26 000 in penalties and interest of R41 000 were added to the debt.
SARS also said Red Pepper Pictures owed it over R4.2-million in unpaid Pay As You Earn, this too jumped to just under R5-million after over R270 00o in penalties and over R400 000 interest were levied to the debt.
The company also owed SARS more than R200 000 in unsettled skills development levy and the amount hiked to over R236 000 after the debt incurred over R14 000 and R18 000 in penalties and interest respectively.
“Grand total across all tax product [is] R9 624 533.62,” reads the judgment.
This means Red Pepper will be listed on the ITC and will not be able to produce shows for the SABC, among others, which strictly required all its service providers to be tax compliant and adhere to tax laws.
SARS explained in its final letter of demand, when the debt was still just under R6-million, that it was willing to help the company settle the debt.
It also stated that it was prepared to attach Red Pepper Pictures’ assets if it failed to settle the debt.
Matter of fact
This story was amended after it was first published. The initial story referred to Mr Zam Nkosi as the owner of Red Pepper Pictures.
Red Pepper Pictures however informed us that Nkosi resigned as a director of the company in 2010 and has “no involvement, shareholding, benefit or fiduciary obligation” to the company.
We have therefore removed references in the story to Mr Nkosi and apologise for any confusion which may have resulted.
Red Pepper Pictures further informed us that it has made full payment of the judgment debt to SARS and was issued with a tax compliance certificate.
We understand that SARS is in the process of rescinding the judgment.
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