Battling between Botswana’s former top spy Isaac Kgosi and Botswana Unified Revenue Services (BURS) appears to be far from over.
The taxman is pressing ahead and wants Kgosi to pay what is allegedly outstanding in more than P9 million from his other sources of income that he never declared between 2008 and 2019, The Business Weekly & Review has established.
A tax assessment report on Kgosi’s accounts from 2008 to 2019, which was meant to be part of BURS’s defence in Kgosi’s P50 million demand for damages, shows that more than P9 million from his various other sources of income were not declared for taxation. These other sources of income are mostly from Kgosi’s farm, business associates and a local businessman.
“The applicant was selected for audit and investigation upon trace that he may have understated his yearly incomings during the period when he held the position of the Director General at the Directorate of Intelligence and Security Services (DISS), given that he ostensibly accumulated various amounts and wealth from entities and persons dealing or having dealings with the DISS and the Government of Botswana and other associates, which suggested that certain income had not been disclosed by him for tax purposes,” reads aprt of an affidavit deposed by BURS Head of Compliance and Investigations, Kaone Molapo.
Molapo adds that during a 10-year period, Kgosi declared only his employment income from the government.
BURS’s tax assessment of Kgosi for Tax Year 2008 states: “A payment of P45,000.00 was made to Collins Newman & Co. for the purchase of Senthane Farm. In result, a total income of P155 000.00 is determined to have been derived and not disclosed and declared by Mr. Issac S Kgosi. Mr Issac S Kgosi is obliged to have declared the other income in the tax year and pay a resultant tax of P19,625.00.”
According to BURS, failure to disclose the above income attracted a penalty of P39,250.00 at the rate of 200 percent on the tax that has been lost by the Commissioner General owing to Kgosi’s wilful default.
Tax Year 2009
“A payment of P400,000 was made to Collins Newman & Co. for the purchase of Senthane Farm. In result, a total income of P698,197.75 is determined to have been derived and not disclosed and declared by Mr. Issac S Kgosi. Mr Issac S Kgosi is obliged to have declared the other income in the tax year and pay a resultant tax of P155,424.44.”
BURS says Kgosi’s failure to disclose his income attracted a penalty of P310,848.88 at the rate of 200 percent on the tax.
Tax Year 2010
Payment of P 687,281.28 and P22,600.00 were made to Collins Newman & Co. for the purchase of Senthane Farm. In result, a total income of P1,187,018.84 is determined to have been derived and not disclosed and declared by Mr. Issac S Kgosi. Mr Issac S Kgosi is obliged to have declared the other income in the tax year and pay a resultant tax of P277,629.71.
According to BURS, Kgosi’s failure to disclose his income attracted a penalty of P555,259. 25 at the rate of 200 percent on the tax that has been lost to BURS.
Tax Year 2011
Cash payments were made to BH Botswana for generators and could also not be traced to employment income amounting to P70,000.00. There were also various deposits in the bank statements including K Binns and LT & Associates amounting to P184,000.00. In result, a total income of P254,000.00 is determined to have been derived and not disclosed and declared by Mr. Issac S Kgosi. Mr Issac S Kgosi is obliged to have declared the other income in the tax year and pay a resultant tax of P44, 375. 00.
His failure to disclose his income attracted a penalty of P88, 750. 00 at the rate of 200 percent on the tax that has been lost to BURS.
Tax Year 2013
Other income allegedly never been declared for tax purposes by Mr. Issac S Kgosi was discovered through a review of payments made for school fees, boreholes and small stock purchases and Skip Hire cash payments for water.
In result, a total income of P1,682,982.53 is determined to have been derived and not disclosed and declared by Mr. Issac S Kgosi. Mr Issac S Kgosi is obliged to have declared the other income in the tax year and pay a resultant tax of P558,635.53.
BURS says his failure to disclose his income attracted a penalty of P841,491.26 at the rate of 200 percent on the tax that has been lost to BURS.
Tax Year 2014
Other income allegedly never been declared for tax purposes by Mr. Issac S Kgosi was discovered through a review of payments made for school fees, transportation at PCJ Motors, payment at Skip Hire, and sale of cattle to Botswana Meat Commission (BMC).
In result, a total income of P844,532.00 is determined to have been derived and not disclosed and declared by Mr. Issac S Kgosi. Mr Issac S Kgosi is obliged to have declared the other income in the tax year and pay a resultant tax of P353, 280.35.
His failure to disclose his income attracted a penalty of P422,266.18 at the rate of 200 percent on the tax that has been lost to BURS.
Tax Year 2015
Other income allegedly never been declared for tax purposes by Mr. Issac S Kgosi was discovered through a review of payments made for school fees, transportation at PCJ Motors, amounts used to buy a motor vehicle at Lesedi Motors and various deposits into bank accounts.
In result, a total income of P2,225, 413.55 is determined to have been derived and not disclosed and declared by Mr. Issac S Kgosi. Mr Issac S Kgosi is obliged to have declared the other income in the tax year and pay a resultant tax of P710, 411.88.
According to BURS, Kgosi’s failure to disclose his income attracted a penalty of P1,112,706.74 at the rate of 200 percent on the tax that has been lost to BURS.
Tax Year 2016
Other income has never been declared for tax purposes by Mr. Issac S Kgosi was discovered through review of payments made for school fees at Northside Primary School and transportation at PCJ Motors.
In result, a total income of P128,270.00 is determined to have been derived and not disclosed and declared by Mr. Issac S Kgosi. Mr Issac S Kgosi is obliged to have declared the other income in the tax year and pay a resultant tax of P58,047.37.
His failure to disclose his income attracted a penalty of P64,135.00 at the rate of 200 percent on the tax that has been lost to BURS.
Tax Year 2017
Other income has never been declared for tax purposes by Mr. Issac S Kgosi was discovered through a review of payments made for school fees at Northside Primary, for generator at BH Botswana, transportation at PCJ Motors, cash payments for livestock and various bank deposits.
In result, a total income of P2,015,402.40 is determined to have been derived and not disclosed and declared by Mr. Issac S Kgosi. Mr Issac S Kgosi is obliged to have declared the other income in the tax year and pay a resultant tax of P724,281.15.
His failure to disclose his income attracted a penalty of P1,558,105.35 at the rate of 200 percent on the tax that has been lost to BURS.
Tax Year 2018
Other income allegedly never been declared for tax purposes by Mr. Issac S Kgosi was discovered through a review of payments made for school fees at Northside Primary, for a generator, cash payments for livestock, various bank deposits, payments for two DAF trucks ordered from the UK, a Nissan truck purchased by Bash Carriers from Nuco Auctioneers SA, and directors remuneration from Silver Shadows (Pty) Ltd.
In result, a total income of P1,415,176.85 is determined to have been derived and not disclosed and declared by Mr. Issac S Kgosi. Mr Issac S Kgosi is obliged to have declared the other income in the tax year and pay a resultant tax of P501, 887.95.
BURS says his failure to disclose his income attracted a penalty of P711, 157.74 at the rate of 200 percent on the tax that has been lost to BURS.
Tax Year 2019
No employment income was assessed for Mr. Issac S Kgosi for the period. Income from other sources evidenced by the review of payment of school fees, cash payments to Furniture Paradise, transportation by PCJ Motors, sale of livestock to Botswana Meat Commission (BMC) and sale of Forex assessed.
In the result, total income of P1,829,320.77 is determined to have been derived by Mr Issac S Kgosi in the tax year and resultant of P434,380.19 and penalty of P868,760.38 were raised.
Kgosi has vowed to challenge this tedious litany of alleged instances of tax fraud by Kgosi and has been filed at the Lobatse High Court as tax assessment of the founding head of Botswana’s secret service.
Meanwhile, impeccable sources have told The BW&R that BURS will file for a stay of execution of Justice Zein Kebonang’s order in which the court ruled in favour of Kgosi. “Having failed to file and deliver their plea and now having been barred to do so, judgment is entered in favour of the plaintiff with costs,” Justice Kebonang ruled on Monday this week. “The damages claim of P50 million being an unliquidated amount is to be assessed on the 2nd of August 20201 at 0830 hours.”
BURS is represented by Tshiamo Rantau of Rantau Attorneys while Kgosi has instructed Thabiso Tafila of Tafila Attorneys.
