Leonard Neill SA REVENUE Services has issued a strong warning to clearing and forwarding agents and shippers that tax evasion will not be tolerated. At a meeting with industry representatives last week SARS national commissioner Pravin Gordhan said that Revenue Services had become aware of what he termed ‘the alarming extent of illegal economic activity prevalent in the import and export sectors.’ High risk cases have been identified, said Gordhan, as a result of the compilation of a list of the biggest trading companies and the top clearing agents. These were, in turn, compared with trade statistics provided by the Reserve Bank. “We have seen an increase in transgressions by some clearing agents, causing their clients to enjoy unfair commercial advantage,” he said. “Such activities, which demonstrate a callous disregard for the law, include the undervaluation of imported goods, violating licence conditions by increasing volumes of imports and the overvaluation of goods. “Under-declarations of quantity, false description of tariff classifications and declaration of origin, and the registration of false licences are other practices. Some are also registering false permits and health certificates and wilfully declaring false destinations for trade produce. “SARS cannot allow these activities to continue unabated. The time has come for us to act. Corrupt elements within this environment will be given a choice. They can either normalise their activities and apply for legitimate trade licences or face the risk of being investigated, audited and prosecuted. This will be done with the full co-operation of the National Prosecuting Authority,” he said. “Those companies profiled as high risk will be audited and investigated. They will be granted the opportunity to respond and re-register. SARS will co-operate with honest companies. “Those parties who remain foul of the law will be prosecuted, be subject to asset forfeitures, have their traded goods confiscated and face hefty fines.” Gordhan also said that SARS would do everything in its power to clean up corruption in the customs environment which, he said, had now spread throughout the country’s trading centres and entry and exit points. According to SARS spokesman Sechaba Nkosi, three people were arrested towards the end of last week including a SARS employee. They have been charged with 30
