Have you ever received a letter from the South Africa Revenue Service (Sars) demanding forfeiture?
Section 88(2)(a)(i) of the Customs Act 91 of 1964 (“the Act”), provides that where any goods liable to forfeiture cannot be found, Sars may demand “payment of an amount equal to the value for duty purposes… of such goods plus any unpaid duty thereon…”, says Mona Appalsamy, senior associate at Shepstone & Wylie law firm.
Section 88(2)(a)(i) of the Act grants Sars a discretionary power, which ought to be exercised in a manner that is consistent with the Promotion of Administrative Justice Act 3 of 2000 (“PAJA”) and the Constitution of South Africa (“the Constitution”).
Accordingly, Sars is required to act fairly, reasonably and lawfully when exercising its powers under section 88(2)(a)(i).