Customers clearing agent found guilty of fraud
The importers then 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 Durban Regional Court has sentenced George Vorster (33) to an effective eight-year imprisonment after he pleaded guilty to 17 counts of fraud perpetrated against the South African Revenue Services (SARS), and 17 counts of fraud perpetrated against his clients, during the period of February to April 2018.
Vorster is a clearing agent in the customs environment, and 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.
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Vorster subsequently calculated the taxes and informed the importers of the amounts due.
The importers then paid the taxes to Vorster for onward payment to the SARS. Using his company, VRST International South Africa PTY LTD, Vorster underdeclared 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 declaration to the SARS resulted in the evasion of taxes amounting to R2, 4 million. Also, 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 DPCI and the SARS, Vorster was summoned to appear in court.
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Regional spokesperson of the National Prosecuting Authority, Natasha Ramkisson-Kara, said, “In aggravation of sentence, Advocate Selvan Govender told the court that shortfalls in taxes hurt society, such as the recent income tax and VAT increases. Vorster was sentenced to an effective eight-year imprisonment (all counts taken as one sentence). VRST International South Africa PTY LTD (which is now dormant) was fined R200, 000 (all counts taken as one for sentence), which was wholly suspended.”
Investigations by the DPCI indicated that Vorster did not own any assets, thus not needing the intervention of the Asset Forfeiture Unit.
“This case is indicative of the effective working relationship between the NPA, the DPCI 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.
