A Durban customs agent has been jailed for defrauding SARS and importers of R2.4 million through tax under-declarations.
Key Points:
-
George Vorster defrauded SARS and importers using tax under-declaration schemes.
-
His actions led to R2.4 million in unpaid taxes and major client losses.
-
The court sentenced him to eight years in prison for all counts.
How the tax fraud unfolded
A Durban customs agent has received an eight-year prison sentence after pleading guilty to multiple counts of fraud involving the South African Revenue Service and importers.
George Vorster, 33, admitted to 17 counts of fraud against SARS and another 17 against his clients. These fraudulent activities took place between February and April 2018. He later entered into a sentencing agreement with the court.
Natasha Ramkisson-Kara, the provincial spokesperson for the National Prosecuting Authority, said Vorster operated as a clearing agent in the customs sector. His clients contracted him to clear goods imported into South Africa for domestic use. These goods attracted customs duties and value-added tax.
Importers provided the Durban customs agent with all the required documentation. They relied on him to calculate the correct taxes due and to complete the clearance process. Vorster calculated the duties and then informed his clients of the amounts they needed to pay.
They, in turn, transferred the money to him. They expected him to pay the taxes to SARS. However, Vorster used his company, VRST International South Africa (Pty) Ltd, to under-declare the duties and VAT to SARS.
Vorster misused client payments and defrauded SARS
He submitted the under-declared figures to SARS and paid only a portion of the actual taxes owed. He kept the remaining balance for himself. As a result, SARS lost R2.4 million in revenue. Meanwhile, importers had to pay the shortfall, losing approximately R2.3 million.
Both the Hawks and SARS conducted a prosecutor-guided investigation and gathered strong evidence. Authorities then summoned Vorster to appear in court.
Advocate Selvan Govender, during sentencing, emphasized that tax evasion negatively affects society. He noted that shortfalls in tax payments reduce funds available for public use.
Stakeholders commend teamwork behind successful prosecution
The court sentenced Vorster to eight years in prison for all charges. It also fined his company, VRST International South Africa (Pty) Ltd, R200,000. However, the court wholly suspended the fine because the company is now dormant.
After the sentencing, Ramkisson-Kara praised the joint efforts of government agencies. “This case is indicative of the effective working relationship between the NPA, the Hawks, and the SARS,” she said. “Collectively, we aim to ensure that all those who evade tax are identified and successfully prosecuted. Stakeholder engagement and collaboration are key to successfully prosecuting tax cases.”
