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The stores at various China malls have a reputation for selling goods at bargain prices and are therefore popular for those wanting to get a good deal - but are they tax compliant?

CapeTalk's Breakfast Show received a number of calls last week encouraging the public not to support these shops, as they don't pay tax.

Kieno Kammies speaks to Steve Kruger of the China Town Trust to find out if the shops trading at their outlets are properly registered for tax purposes and whether their merchandise is properly accounted for in terms of import

The trust helped set up the three China Town malls in Ottery, Sable Square and Parrow in Cape Town and act as landlords.

We let the spaces to Chinese traders.

Steve Kruger - China Town Trust

It's very dangerous to generalise and pick on one group and say they are misbehaving.

Steve Kruger - China Town Trust

The trust has 140 tenants across the three venues.

Every one of them has to sign a formal lease and all of them are Fica'd, and because we have all of these centralised tenants, we have had issues with Sars, Customs and the Department of Labour in the past.

Steve Kruger - China Town Trust

He says interpreters were brought in to facilitate proper engagement between the parties.

All of our tenants, I think I can say with confidence, are registered taxpayers, many are registered to pay VAT, and as far as possible comply with Department of Labour regulations.

Steve Kruger - China Town Trust

As far as China Town goes, we are tax compliant and now most traders have credit card machines. So if they take cash, it is probably the customer that is wanting to pay cash...and taking cash does not mean they are not tax compliant.

Steve Kruger - China Town Trust

Listen to what Kruger has to say below:

This article first appeared on CapeTalk : 'China Town traders are tax compliant and it's dangerous to pick on one group'

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