In a new twist on the Mirror Trading International (MTI) saga of the collapsed bitcoin scheme, revenue collector South African Revenue Services (SARS) has requested $ 55.3 million from the scheme’s liquidators. The debt collector added that he wants the tax account to be settled before MTI’s liquidation process is finalized.
Liquidators in default “such as public officials deemed”
The South African debt collector is said to have filed a claim of around $ 55 million against the now defunct Ponzi Bitcoin Mirror Trading International (MTI) scheme. The appeal filed with the Master of Cape Town High Court covers two tax periods, the years 2019 and 2020.
According to a report of Moneyweb, the revenue collection agency known as the South African Revenue Service (SARS) said they want this tax account to be settled prior to finalizing MTI’s liquidation process. As previously reported by Bitcoin.com News, a total of $ 75 million was made from the sale of bitcoins belonging to MTI that were recovered by forex trader FX Choice.
SARS, which accuses the liquidators of the bankrupt company of failing to perform their functions “as alleged public officials”, allegedly said it reserved the right to modify its request in the event that additional bitcoins belonging to MTI were found.
In his filing with the Master of High Court, the debt collector said that in addition to the late delivery of the income information, the liquidators did not declare the $ 10.8 million and $ 398 million in revenue made in 2020 and 2021, respectively.
Of the $ 55.3 million SARS charges liquidators, about $ 20.8 million is for normal income tax, the Moneyweb report said. To underestimate the incomes, SARS said it wanted $ 34.5 million from the liquidators.
SARS wants privileged creditor status
Furthermore, when filing evidence on behalf of SARS, Johan Matthews, of the Tax Collector’s Illicit Economy Unit, allegedly argued that the collector should be granted privileged creditor status under the Insolvency Act. If granted, this status prevents liquidators from disbursing recovered funds until the debt collector’s claims have been fully resolved. SARS also said that unless a statement is filed within 40 days of the assessment, MTI’s liquidators will not be able to object or appeal.
The report also quotes the revenue collector as explaining why he is not waiting for the liquidation process to be completed.
“Taking into account that the taxpayer [MTI] has been definitively liquidated and that the liquidators are finalizing the administration of the assets including the payment of interim dividends to proven creditors, there are reasonable grounds to believe that the taxpayer will not pay the full amount of the tax and that the recovery of the tax may be difficult in the future, “SARS reported.
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