Tax Collector Wants $55 Million From Collapsed Bitcoin Ponzi Scheme MTI — Liquidators Accused of Failing Their Duty – Taxes Bitcoin News

In a fresh twist to the collapsed bitcoin Ponzi scheme Mirror Trading International (MTI) saga, revenue collector South African Revenue Services (SARS) has demanded $55.3 million from the scheme’s liquidators. According to the revenue collector, it would like the tax bill paid before MTI’s liquidation.

Liquidators Failing ‘as the Deemed Public Officers’

According to South Africa’s revenue collector, he filed a claim for $55 million against Mirror Trading International (MTI), a Ponzi scheme that used bitcoin. Two tax periods were covered by the claim to Master of Cape Town High Court, 2019 and 2020.

According to a report by Moneyweb, the revenue collection body known as the South African Revenue Service (SARS) said it wants this tax bill settled before the finalization of MTI’s liquidation process. Bitcoin.com News previously reported that MTI’s bitcoins were sold to FX Choice, an international forex trader. This resulted in a net of $75 Million.

SARS, which accuses the collapsed firm’s liquidators of failing to carry out their duties “as the deemed public officers,” reportedly said it reserved the right to adjust its claim in the event additional bitcoins belonging to MTI were found.

According to the Revenue Collector, it claimed, among other things, that the Master of High Court did not receive the information on income and that the liquidators had failed to report the $398million and $10.8million in income which were realized in 2020 and 2021, respectively.

According to the Moneyweb report, $20.8 million of $55.3 million the SARS wants from liquidators is for normal income tax. SARS demanded $34.5 million to liquidators in order to understate incomes.

SARS Demands Preferential Creditor Status

Also, when presenting evidence on behalf of SARS, Johan Matthews, from the revenue collector’s Illicit Economy Unit, reportedly argued that the revenue collector should be given preferential creditor status as per the Insolvency Act. If granted, this status bars liquidators from disbursing recovered funds until the revenue collector’s claims have been settled in full. SARS said that MTI liquidators can’t object or appeal until a return has been submitted within 40 calendar days.

In the report, the revenue collector also explains why the collection isn’t waiting to be completed.

“Taking into account that the taxpayer [MTI] has been finally liquidated and that the liquidators are in the process of finalising the administration of the estate 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 tax and that the recovery of the tax may be difficult in future,” SARS reportedly said.

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Terence Zimwara

Terence Zimwara, a Zimbabwean journalist, writer and author who has been awarded the Zimbabwe Booker Prize. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.