The Sars lost over R2 million.
Image: File
A customs clearing agent from Durban in KwaZulu-Natal has been sentenced to eight years' imprisonment on 17 counts of fraud.
George Vorster, 33, pleaded guilty to the charges brought against him for fraud perpetrated against the South African Revenue Services (SARS) and 17 counts of fraud perpetrated against his clients from February to April 2018.
He also entered into a sentencing agreement.
According to the provincial spokesperson for the National Prosecuting Authority (NPA), Natasha Ramkisson-Kara, Vorster is a clearing agent in the customs environment.
His clients requested that he clear goods that were imported to South Africa for local use. Since these goods attracted customs duties and Value Added Tax (VAT), the importers supplied Vorster with all the information to calculate the taxes due when clearing the goods for local consumption.
The court heard Vorster calculated the taxes and informed the importers of the amounts due. The importers paid the taxes to Vorster for onward payment to the SARS. Using his company, VRST International South Africa (Pty) Ltd, Vorster under-declared the customs duties and VAT due to the SARS.
He then paid the Sars the under-declared monies and took the balance of the money for himself.
The under-declaration to the SARS resulted in the evasion of taxes amounting to R2.4 million. The importers had to pay the shortfall of taxes to the SARS and lost around R2.3 million.
Following thorough prosecutor-guided investigations conducted by both the Hawks and the SARS, Vorster was summoned to appear in court.
In aggravation of sentence, Advocate Selvan Govender told the court that the shortfall in taxes hurt society.
The court sentenced Vorster to eight years in prison on all counts; his company, VRST International South Africa (Pty) Ltd (which is now dormant) was fined R200,000, which was wholly suspended.
“This case is indicative of the effective working relationship between the NPA, the Hawks, and the SARS. Collectively, we aim to ensure that all those who evade tax are identified and successfully prosecuted. Stakeholder engagement and collaboration are key to successfully prosecuting tax cases,” Ramkisson-Kara said.
robin.francke@iol.co.za
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