Sars moves to auction Lutheran Church assets over R1m tax debt

Church faces legal action over R1m debt

A third suspect was arrested on Wednesday and made a brief appearance in the Durban magistrate's court in connection with the attempted murder of Sars advocate Coreth Naude outside an Umhlanga hotel in July last year. File photo.
Sars has threatened to auction assets belonging to the Evangelical Lutheran Church if it fails to settle a tax debt exceeding R1m. (Freddy Mavunda)

The South African Revenue Service (Sars) has threatened to auction assets belonging to the Evangelical Lutheran Church if it fails to settle a tax debt of more than R1m.

The warning is contained in a final notice of debt collection issued to the church on February 17, cautioning that Sars may seek a writ of execution from a high court should the outstanding amount remain unpaid or if no settlement arrangement is reached.

According to the notice, seen by Sunday Times, the church was given 10 business days to respond. It was also offered the option of settling the debt through monthly instalments.

“A civil judgment could be entered against you, in which case a warrant of execution may be issued for the sheriff of the court to attach and sell your assets,” the notice reads.

It further warns that Sars may appoint a third party to collect the debt and urges the recipient to respond within five business days if they intend to pursue any remedies.

“You may apply for remedies, including payment in instalments or apply for a suspension of debt if you have submitted a formal dispute,” the notice adds.

Sars spokesperson Siphiti Sibeko declined to comment on the matter, citing taxpayer confidentiality provisions.

“As you know, Chapter 6 of the Tax Administration Act prohibits Sars from disclosing confidential information about any taxpayer,” he said.

Efforts to reach church leader Nkosinathi Myaka for comment were unsuccessful, as all known contact numbers were unreachable.

However, a source within Sars’s debt collection unit indicated that the action stems from the church’s alleged failure to file income tax returns for the 2025 financial year.

“According to Sars, the notice of debt follows non-compliance with tax obligations for the previous financial year. This prompts the revenue service to initiate collection measures should the notice be ignored,” the source said.

The Evangelical Lutheran Church has more than 580,000 members across seven dioceses spanning South Africa, Botswana and Eswatini.

The church also holds historical significance. During his imprisonment on Robben Island, former president Nelson Mandela received pastoral care and spiritual support from the church through Bishop Adalbert Brunke of the then Cape Orange diocese.

Brunke was later publicly thanked by Mandela for his ministry following his release in 1990.

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