The Commissioner of the South African Revenue Service (SARS), Edward Kieswetter, has granted a deferred appeal to review the Commissioner's decision denying British Petroleum of South Africa's (bpSA) refund claim and granting forfeiture under the promotion. It welcomed the Pretoria High Court's decision to dismiss the application. Law of Administrative Justice (Paja).
In a statement released on Monday, Kieswetter expressed satisfaction that the court has provided legal certainty and clarity on how so-called “ghost exports” should be dealt with in the future.
The oil giant has been embroiled in a legal dispute with Sars since 2019, with Sars claiming it sold 3 million gallons of diesel to Zimbabwe and seeking refunds under the diesel rebate scheme.
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The High Court's judgment is based on section 47(9)(e) of the Customs and Excise Act, and is a follow-up to its previous judgment of 12 January 2024, which dismissed bpSA's appeal against a decision taken by the tax officer under the Customs and Excise Act. This will be a continuation.
The Commissioner determined that bpSA was not eligible for a refund of duties paid on fuel that the oil group claimed to have exported to Zimbabwe. This is because bpSA is unable to provide evidence that the fuel was actually exported to Zimbabwe and is unable to identify the consignee who received the export delivery in Zimbabwe.
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The oil groups argued that the High Court should have also heard the Commissioner's appeal against the customs decision. However, the High Court dismissed this claim, stating that there was no factual dispute regarding the customs decision, only the confiscation.
“SARS has had to deal with this phantom export phenomenon with attendant costs to the public finances, resulting in insufficient reimbursement,” Kiewetter noted.
Sars said it is working diligently to assist taxpayers in meeting their legal obligations and promote trade facilitation. Nevertheless, taxpayers who commit violations will be subject to strict measures and costs.
“This will be pursued without fear, favor or prejudice,” Kieswetter declared.
* Terri-Ann Brouwers is an intern at Moneyweb.
