Tax Collector Wants $55M From Collapsed Bitcoin Ponzi Scheme MTI – Liquidators Accused of Dereliction of Duty – Taxes Bitcoin News
In a new twist to the collapsed bitcoin Ponzi saga Mirror Trading International (MTI), revenue collector South African Revenue Services (SARS) has demanded $55.3 million from the scheme’s liquidators. The collector added that it wants the tax bill to be settled before the MTI liquidation process is finished.
Liquidators failing ‘as they regarded as public servants’
The South African revenue collector is said to have filed a claim of approximately $55 million against the now-defunct bitcoin Ponzi scheme Mirror Trading International (MTI). The claim submitted to the Master of Cape Town High Court applies to two tax periods, the years 2019 and 2020.
According to a report by Moneyweb, the revenue collection agency known as the South African Revenue Service (SARS) said it wants this tax bill to be settled before the finalization of MTI’s liquidation process. As previously reported by Bitcoin.com News, a total of $75 million was realized from the sale of bitcoins belonging to MTI that were recovered from currency trader FX Choice.
SARS, which accuses the collapsed firm’s liquidators of failing to perform their duties “as the supposed public servants”, reportedly said it reserves the right to adjust the claim in the event additional bitcoins belonging to MTI are found.
In its submission to the Master of the High Court, the Revenue claimed that in addition to the late provision of the income information, the liquidators failed to declare the income of $10.8 million and $398 million realized in 2020 and 2021 respectively.
Of the $55.3 million that SARS is claiming from liquidators, about $20.8 million is for ordinary income tax, the Moneyweb report said. For understating revenue, SARS said it wants $34.5 million from the liquidators.
SARS wants preferential creditor status
Also, presenting evidence on behalf of SARS, Johan Matthews, from the tax collector’s Illicit Economy Unit, argued that the revenue collector should be given preferential rights as a creditor under the Insolvency Act. If granted, this status prevents liquidators from disbursing collected funds until the revenue collector’s claim has been settled in full. SARS also said that unless a return is submitted within 40 days of assessment, MTI liquidators will not be able to object or appeal.
The report also quotes the revenue collector explaining why it is not waiting for the completion of the liquidation process.
“Considering that the taxpayer [MTI] is finally liquidated and that the executors are in the process of finalizing the estate administration, including the payment of interim dividends to documented creditors, there is reasonable reason to believe that the taxpayer will not pay the full amount of tax and that the recovery of the tax may be difficult in the future, SARS said .
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