Johannesburg - The South African Revenue Service (SARS) and South African Police Service (SAPS) raided an unauthorised warehouse in Vryburg, North West, confiscating millions of rand worth of illegally manufactured alcohol and bitcoin mining equipment.
According to a SARS statement, the warehouse was used to illegally connect the crypto currency mining equipment to the town’s electrical power supply.
"It was also used to manufacture 14 617 bottles of duty-free liquor and popular local brands.
“The bitcoin mining equipment is valued at around R10 million, while the alcohol is estimated at R3.8m. The warehouse was well equipped with state-of-the-art equipment to enable those involved to carry out their criminal activities.
One foreign national was arrested. An investigation is under way, and more arrests are expected," read the statement.
SARS Commissioner Edward Kieswetter noted the continuous collaboration between SARS and SAPS in the pursuit of criminally inclined individuals.
Kieswetter said the raid formed part of SARS’ decision to act more vigilantly against unregistered taxpayers conducting business and to protect legitimate businesses.
"The abuse of duty-free labels to circumvent payable duties and other criminal undertakings found at this warehouse undermines our economy and will be confronted and met with the full might of the law," said Kieswater.
Meanwhile, SARS wishes to provide an update on the subject of Tax Clearance Status.
"As the previous Tax Clearance Status (TCS) solution had been operational since April 2016 and processed substantial and growing volumes of taxpayers requesting third party verification, including foreign investment allowance and emigration, there was a need for an enhancement to the system to rationalise and speed it up.
"In addition, following the announcement of the abolition of emigration as an exchange control concept in 2020, the South African Reserve Bank (SARB) has removed the requirement to apply to emigrate financially (the MP336 application). This has necessitated changes to SARS’ processes and forms."
SARS added that the enhanced TCS system was introduced on April 24, 2023, following consultations with authorised dealers and the SARB.
"It supports the strategic objectives of SARS by making it easier for taxpayers to comply. It also entrenches TCS verifications in government, the private sector, and individual taxpayer space, either voluntarily or via legislation," read the statement.
According to SARS, while this makes it simple for taxpayers who comply, it will be more difficult for those who choose not to.
For taxpayers and traders who are in compliance, the improved TCS system also intends to significantly reduce turnaround times.
"The additional information requested on the Approval for International Transfer (AIT) application allows SARS to ensure that all required tax payable has been accounted for and, if required, address any non-compliance that is detected through a verification and/or an audit. This forms part of the SARS modernisation journey that aligns with our strategic intent of voluntary compliance."
"No TCS is required for yearly transfers up to R1 million. SARS is of the view that taxpayers applying for more than the yearly R1 million single discretionary allowance are sophisticated taxpayers who should reasonably have records of the cost price of major assets they own.
This includes their local and foreign fixed properties, listed and unlisted investments, crypto assets, and cash in the bank, to name a few. If the taxpayer does not own a particular type of asset, that should be captured as zero on the asset and liability part of the application form," added the statement.
The Star