The South African Revenue Service (Sars) has warned the Evangelical Lutheran Church that it may auction the church’s assets if it fails to settle a tax debt exceeding R1 million. The notice, issued on February 17, gives the church 10 business days to respond and offers the option of settling the debt through monthly instalments. Sars has threatened legal action, including a writ of execution, if the debt remains unpaid. The church, which has over 580,000 members across South Africa, Botswana, and Eswatini, has historical significance, including its support for Nelson Mandela during his imprisonment. The potential auction of its assets has raised concerns about the impact on its religious and social services.
The South African Revenue Service ( Sars ) has issued a stern warning to the Evangelical Lutheran Church , threatening to auction its assets if the church fails to settle a tax debt exceeding R1 million.
The notice, issued on February 17, cautions 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 and was offered the option of settling the debt through monthly instalments.
The notice explicitly states that a civil judgment could be entered against the church, leading to the attachment and sale of its assets by the sheriff of the court. 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, including payment in instalments or a suspension of debt if a formal dispute has been submitted.
Sars spokesperson Siphiti Sibeko declined to comment on the matter, citing taxpayer confidentiality provisions under Chapter 6 of the Tax Administration Act. 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. The source explained that the notice of debt follows non-compliance with tax obligations for the previous financial year, prompting Sars to initiate collection measures should the notice be ignored.
The Evangelical Lutheran Church, with more than 580,000 members across seven dioceses spanning South Africa, Botswana, and Eswatini, holds significant historical and cultural importance. 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.
The potential auction of the church’s assets has raised concerns among its members and the broader community, as it could impact the church’s ability to continue its religious and social services. The situation highlights the importance of tax compliance for all organizations, including religious institutions, and the severe consequences of non-compliance
Sars Evangelical Lutheran Church Tax Debt Asset Auction Nelson Mandela
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