Julius may access accounts for 90 days

Julius may access accounts for 90 days Tax evasion suspect commits to pay N$1.2 million in tax liability The businessman who was released on bail over fraud and tax evasion charges has won a High Court battle to access millions frozen in local bank accounts. One of the accused in the massive fraud and tax evasion case involving N$3.5 billion and whose assets were frozen, yesterday reached a settlement agreement with the finance ministry, and the departments of inland revenue, and customs and excise.

The agreement was made an order of the court.

Laurensius Julius, the owner of the Extreme Customs Clearance Service through which the alleged N$3.5 billion fraud and tax evasion was said to have been committed, will now be at liberty to utilise his accounts at Nedbank, First National Bank, Bank Windhoek and Capricorn Asset Management as he deems appropriate, for 90 days.

He was arrested together with three Chinese nationals for fraud, tax evasion and money-laundering following an investigation into the outflow of foreign currency from Namibia.

Julius, Tao Huizhong and Huang Jinrong were granted bail of N$1.5 million each in January this year, while another co-accused Zhu Honggang, was granted bail of N$500 000 in the Ondangwa Magistrate's Court in December 2016.

The fifth accused in the matter and influential Chinese businessman Jack Huang was granted bail of N$1 million following his arrest in February.

In the matter heard yesterday, Julius’ company, himself and his wife Janieta Jennever Julius, are the first to third applicants.

The minister of finance, Nedbank, the commissioner of inland revenue, acting commissioner of customs and excise, First National Bank, Bank Windhoek and the director of financial intelligence were listed as the respondents.

He submitted the application after the minister of finance had instructed the commissioner of inland revenue on 28 February to transfer to Nedbank an amount of N$14 528 289.38 from five different accounts to inland revenue.

On the same date, a further N$134 904.32, on instructions of the finance minister, was transferred by inland revenue to Nedbank from the five accounts of the applicant.

The respondents also transferred N$93 million from Julius’s accounts to inland revenue and in the event that the account did not have sufficient funds coming in, to hold it until the balance is settled.

However, the parties agreed that any amounts collected by the tax authorities as set out in the papers shall be retained by the tax authorities towards any liability of the applicants.

The respondents had prevented the applicants from accessing the accounts.

The respondents, in terms of the agreement, undertook to refrain from taking any further enforcement and/or execution steps in respect of any tax and or value added tax (VAT) and/or customs duties liabilities of the applicants for a period of 90 days.

This is calculated from the date of the court order.

The appointment of Nedbank, First National Bank, Bank Windhoek and Capricorn Asset Management as agents in terms of the applicable tax legislation is also lifted for a period of 90 days as from the date of the court order.

Julius undertook to pay N$400 000 per month effective from 30 June for three months towards any tax liability.

He is allowed to apply for relief in terms of the incentive programme for payment of outstanding taxes and undertook to consider such application.

The applicant also undertook to follow the dispute resolution process provided for in the legislation.

Finally, the suspension of the customs clearance licence of Extreme Customs Clearance Service was lifted with immediate effect for 90 days from the date of the order provided that the applicants will not remit any funds abroad for clients or any other person.

Deputy Judge President Hosea Angula presided.

FRED GOEIEMAN