Edward Kieswetter, the Commissioner for South African Revenue Service (SARS) has welcomed the Pretoria High Court’s recent decision to reject British Petroleum of South Africa’s (BPSA) application for leave to appeal. The court’s decision upheld the commissioner’s refusal of refund claims and levy forfeiture under the Promotion of Administrative Justice Act (Paja).
Kieswetter revealed in a statement on Monday that he is satisfied with the court’s ruling, emphasizing that it provides legal certainty and clarity on how Sars will handle ‘ghost exports’ in the future.
The legal dispute between BPSA and Sars dates back to 2019 when BPSA claimed to have sold three million gallons of diesel to Zimbabwe, seeking refunds under the diesel rebate scheme.
The recent court decision builds on the judgment from January 12, 2024, where the court rejected BPSA’s appeal under Section 47(9)(e) of the Customs and Excise Act against the determinations made by Sars. The commissioner had determined that bpSA did not qualify for duty refunds on fuel purportedly exported to Zimbabwe due to a lack of evidence supporting the export claim and an inability to identify the consignee in Zimbabwe.
Despite BPSA’s contention that the appeal should be referred to trial, the high court rejected this, stating that the dispute cantered on forfeiture rather than customs determination.
Kieswetter highlighted the challenge Sars faces with phantom exports, leading to undeserved refunds and additional costs to the fiscus. He emphasized Sars’ commitment to assisting taxpayers in meeting their legal obligations and facilitating trade. However, stringent measures and costs will be imposed on taxpayers engaging in non-compliant behaviour, with Kieswetter asserting that such actions will be pursued without fear, favour, or prejudice.
