SARS wins R1bn tax evasion case against Africa Cash & Carry

The South African Revenue Service welcomed the judgement of the Supreme Court of Appeal that brought to an end a protracted dispute with Africa Cash & Carry, it said in a statement on Thursday.

The judgment – issued on November 21 – followed an investigation by SARS into the use of sale suppression systems and the manual manipulation of accounting books, the revenue agency said. The Tax Court altered its assessments to include some 200% additional tax, according to the statement.

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Africa Cash & Carry disputed the results of the investigation and ultimately approached the Supreme Court of Appeal.

The Supreme Court, however, upheld the Tax Court order.

"SARS is committed to combat intentional tax evasion. SARS is concerned with the compliance levels within the Cash & Carry industry with a particular focus on 'Ooplang' schemes involving 'Ghost Exports', non-recording of the sale of cell-phone airtime, manipulation of loan accounts, claiming fraudulent invoices for VAT and Income Tax purposes, utilisation of intermediary shell companies to create invoices and sales suppression systems," SARS said.

Compiled by Marelise van der Merwe