‘Hold onto those proof of purchase documents’

If you don’t hold on to proof of purchase documents for imported or excisable goods you could have legal troubles if the SA Revenue Service (Sars) demands evidence that excise duties have been paid, according to Taryn Hunkin, customs specialist at Durbanbased lawyers Shepstone & Wylie. And that ruling covers everybody who is “dealing” in any way. In terms of Section 102 of the Customs and Excise Act 91 of 1964 you must retain proof of purchase. If you’re an importer or manufacturer, Sars can also request proof that customs and excise duties have been brought to account – that is the import documentation. And you can have the bailiffs come knocking on your door if you can’t comply. Said Hunkin: “In the case The Commissioner for Sars v A Saleem 2008 ZASCA 19 (27 March 2008), the Supreme Court of Appeal held that Sars was entitled to seize goods belonging to a small business. Sars officials requested the owner of the business to provide proof of purchase for the goods in question. The owner was unable to provide the requested documentation, and the goods were seized.” In this case, she added, the Sars officials had reasonable suspicions that – in an attempt to avoid the payment of duty – the goods were not imported into SA through the correct channels. “The owner of the business did not keep proper books and records reflecting the origin of the goods,” Hunkin told FTW, “and proving that duty had been paid on the goods. “The court therefore held that this was reasonable grounds for Sars to conclude that the goods were liable to forfeiture and it was therefore entitled to seize them.” And claiming your import documentation or company books detailing the payment have been mislaid/stolen/burnt in a fire/eaten by the dog won’t keep your head above legal water. Section 102 will still get you. Said Hunkin: “If, in any prosecution under this act, the question arises whether the proper duty has been paid, or whether any documents or books exist or have been completed and retained, it is presumed that the duty has not been paid and that the documents or books do not exist or have not been completed and retained unless the contrary is proved.”