State Loses Another High Profile Case

  • Court says BURS’ decision to include Prevailing Security ‘s non income tax receipts was irrational and unreasonable
  • P14 million in tax penalties set aside

LETLHOGILE MPUANG & MPHO MATSHEDISO

The Botswana Unified Revenue Service (BURS) has lost a case in which it demanded millions of pula in taxes that were allegedly never declared by Prevailing Security (Pty) Ltd over the past 10 years.

Orange

Prevailing Security is owned by local entrepreneur and pastor, Shadrack Baaitse, who is alleged to have close ties to former president Ian Khama and former spy chief Issac Kgosi.

The company’s business activities include provision of security guard services, closed circuit television (CCTV) installations and cash-in-transit services.

In his judgement, Justice Leburu made an order setting aside BURS’ decision to impose over 50 million in taxes and penalties for the year 2014. The judge said he was satisfied that the decision of the Commissioner General to include non-income receipts as part taxable income and receipts was irrational and unreasonable. He further order that BURS should reassess the company’s tax liabilities within 60 days.

BURS was also ordered to bear all legal costs.