CAPE TOWN - The South African Revenue Service (Sars) has welcomed the 10-year sentence handed down to Gupta-owned Oakbay Trading director DP Naik for fraud and contravening the Customs and Excise Act.
SARS Commissioner Edward Kieswetter welcomed the 10-year sentence after Naik falsified export documents and diverted cigarettes back into the South African market without paying the excise and duties for import and export.
According to evidence presented in the Johannesburg Regional Court, the total prejudice to SARS was R18 million.
Naik claimed the company had exported cigarettes to Zambia. These exports were investigated and proven to be false exports, Sars said.
“This crime was committed to evade duties and excise payable on the cigarettes,” Sars said.
Naik was convicted on five counts of fraud and for contravening section 80 (1) of the Customs and Excise Act.
Kieswetter praised the investigating team and the co-operation of the National Prosecuting Authority for securing a conviction and sentencing.
“SARS has repeatedly stated that the organisation will make it hard and costly for taxpayers and traders who wilfully break the law and undermine the SARS mandate of collecting revenue.
“We are committed to helping those taxpayers and traders who seek to comply voluntarily with their legal obligations. Several digital channels have been created over the years to make it easy and simple for such taxpayers to comply.
“This conviction and sentencing should send a clear signal that SARS has zero tolerance for such criminal behaviour, and will use all avenues at its disposal to pursue these criminals,” Kieswetter said.