Global Courant 2023-05-05 17:58:02
Members of the South African Revenue Service (SARS) and the South African Police Service (SAPS) raided an unauthorized warehouse in Vryburg, North West on May 4, 2023.
The two authorities seized millions of rands worth of illegally produced alcohol and bitcoin mining equipment.
“The warehouse was used to illegally connect the cryptocurrency mining equipment to the city’s electrical power supply.”
“It was also used to manufacture 14,617 bottles of duty-free liquor and popular local brands,” SARS said.
The bitcoin mining equipment is valued at around R10 million, while the alcohol is valued at R3.8 million.
SARS Commissioner Edward Kieswetter praised the continued cooperation between SARS and the South African Police Service (SAPS) in apprehending those determined to commit crime.
He said the raid was part of SARS’ decision to be more vigilant against unregistered taxpayers doing business and to protect legitimate businesses.
“The misuse of duty-free labels to evade due duties and other criminal enterprises found in this warehouse is undermining our economy and will face the full force of the law,” said Kieswetter.
On top of the financial consequences of not paying utilities such as electricity. Eskom has warned that illegal connections could overload the national system and cause power to go out or go out.
The IRS has set its sights on ensuring strict compliance and has launched a concerted effort to crack down on crypto assets.
Jashwin Baijoo, the head of crypto asset compliance at Tax Consulting SA, said that due to the unreported and unique nature of new financial instruments in South Africa.
SARS has clarified that gains or gains from crypto assets are subject to normal income and capital gains tax rules.
Tax Consulting SA said it is important for relevant authorities to determine whether profits from crypto asset transactions, both on the platform and when converted to fiat currency, are considered capital or income may be uncertain.
SARS currently tracks crypto assets through broad collection powers granted under the Income Tax Act, including a requirement for third-party service
Read: SARS updates its systems – here’s what you need to know
