Clearing agent fined R140m for SARS fraud
Durban-based customs clearing agent Ocean Light Shipping has paid a heavy price for defrauding SA Breweries (SAB) of nearly R140m.
A Business Day report says SARS has cancelled the company’s licence, meaning it will be near impossible for it to do business in SA in future.
SAB imported Corona Light beer from Mexico from August 2018 to November 2019, using the services of Ocean Light. The goods were cleared in the Port of Durban in 139 import transactions.
However, SAB later got wind of the goods having been fraudulently cleared by Ocean Light as traditional African beer – a product that attracts either no import duties or far less than Corona beer.
As a result of Ocean Light’s activities, import duties and VAT amounting to R139m was not paid over to SARS and in July 2022, the taxman issued a letter of demand to SAB.
However, SAB told SARS it must recover the taxes from Ocean Light, as it had paid all amounts that were due to SARS to the clearing agent.
Ocean Light was licensed by SARS, and the decision to clear and release the goods for import had been made by the receiver of revenue.
After numerous exchanges and with the parties failing to find each other, the matter ended up in the Gauteng High Court (Johannesburg), which ruled in favour of SARS, says the Business Day report.
‘In this case, the applicant (SAB) does not argue against the actual authority it has over Ocean Light. Even the conduct of the parties supports the principle of authority whether ostensible or otherwise. For example, Ocean Light handled huge amounts on behalf of the applicant to attend payment to SARS,’ the judgment reads.
The judge went on to rule that SARS did not impose forfeiture on SAB, meaning it did not punish SAB for Ocean Light’s fraudulent activities.
‘The tax amount which is the subject matter is not a form of punishment but fulfilment of payment obligation on the applicant’s part ... there is no other answer than that the business-like approach is to attribute principal-agent relationship between the applicant and Ocean Light. If Ocean Light is agent of the applicant, as already found, applicant ought to pay SARS, not Ocean Light.’
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.
