The SARS Illicit Economy unit has scored a victory in the SCA over the interpretation of the Tax Administration Act and warrants for search and seizure. The matter pertains to a raid on precious metals dealer, Bullion Star, in March 2022, after SARS obtained a warrant from the High Court in terms of section 59 of the Tax Administration Act (TAA) 28 of 2011.

It has been reported that the firm was selected for a tax audit and SARS received a search warrant for three of premises to obtain information about the goods it sold and exported.

SARS says it was refused access to the business premises and the vehicles on its premises.

‘Security video footage revealed that goods were removed from the business premises and placed into vehicles on its premises, prior to SARS gaining access to the property,’ SARS said in a statement.

The Daily Maverick reports that the company had facilities capable of transforming precious metals and minerals into a ‘higher-value’ product to be sold locally or abroad.

SCA Deputy President Xola Petse and Judges Thobeka Mbatha, Keoagile Matojane and acting Judges Fayeeza Kathree-Setiloane and Raylene Keightley on Tuesday found in favour of SARS.

The Daily Maverick reports that the court dismissed with costs an appeal in the matter between Kapeel Bechan, and Bechan Consulting (PTY) LTD (trading as Bullion Star) and SARS Customs, Tactical and Illicit Economy Units as well as the Minster of Police and the Directorate for Priority Crime Investigation (DPCI).

DM notes that Bechan had sought the return of items seized during a surprise raid on the company’s premises in Rivonia on 29 March 2022, including 10 laptops, four cellphones, and various financial documents related to Bullion Star.

He claimed this had been done unlawfully.

The company had been flagged by SARS’ radar when it submitted a VAT return claim in 2022 for R13.9m. Prior to this, it had rarely exported. However, SARS found that in February 2022 it had exported unwrought gold in excess of R126m.

Judge Kathree-Setiloane noted that ‘search and seizure operations on the premises identified in a warrant would be rendered ineffectual if SARS officials were powerless, under the TAA, to search third parties for relevant material’.

She said it was a ‘well-established general principle that this court decides whether the judgment appealed from is right or wrong according to the facts in existence at the time it was given and not according to new circumstances that came into existence afterwards. It follows that the subsequent setting aside of the warrant by the High Court is irrelevant to this appeal’.

Full Daily Maverick report

Judgment