Fuel company remains closed after SARS raid

Date: 18 July 2024 By: Andries van Zyl

More than a week after the South African Revenue Service (SARS) raided the offices of the well-known Louis Trichardt-based fuel company Alliance Fuel, the company’s offices and all of its depots remain closed. The exact reason for the closure also remains unknown, but with SARS involved, the problem will definitely be one of taxation.

Shortly after the closure of the company’s headquarters in Louis Trichardt and all of its depots on Wednesday, 10 July, the company was asked to shed light on the situation.

Alliance Fuel’s management responded on Friday, 12 July, by confirming the closure, stating that this was done after SARS had brought an ex parte court application. An ex parte decision is one decided by a judge without requiring all of the parties to the dispute to be present. The company added that SARS, however, had failed and neglected to attach the application warranting the closure.

“SARS has been placed on terms to supply the affidavit, and our legal team will proceed on an urgent basis to compel SARS to release the application. It is impossible for us to respond to the allegations as our rights in terms of the audi alteram partem [let the other side be heard] principle are being violated,” said the company in their response on Friday. They did not state what the allegations were.

The newspaper wanted to know what impact the closure of their local and other depots across the country would have on their client base and the filling stations dependent on them as suppliers. “It has an impact on our customers as well as our pecuniary interest. We have appointed TAYFIN Forensic and Investigative Auditors (TAYFIN) to challenge SARS’s undisclosed findings and to calculate damages,” said the company. As to how many clients and filling stations are affected, the company stated that their business model and client numbers were not for public display.

The company could not say how long it would take to resolve the SARS issue and have their business reopen. “We cannot give you an exact time, considering the urgent [court] application, soon to be launched,” said the company. They then referred all further questions to TAYFIN Forensic and Investigative Auditors.

The company’s offices and depots remained closed this week. This was confirmed by Mr Mahier Tayob of TAYFIN in reply to follow-up questions regarding the company’s closure. He was also asked what the latest was regarding Alliance Fuel’s legal processes against the SARS court order. “SARS capitulated [surrendered] last night and tendered the application despite opposing the matter(s),” said Tayob on Tuesday morning, adding that the cases were to be argued in the High Court in Polokwane later the same day and in the High Court in Johannesburg on Wednesday. At that stage, neither the company nor Tayob still wanted to state what the charges brought against Alliance Fuel were. “This matter is sub judice and I shall refrain from commenting on issues under judicial deliberation,” Tayob said.

Tayob confirmed that the Alliance Fuel versus SARS case was indeed heard in the High Court in Polokwane on Tuesday but that judgement had been reserved. “The matter in Johannesburg will be heard on Friday, due to a constrained court roll,” said Tayob. Again, he could not give any indication as to how long the company’s offices and depots would remain closed. “Pursuant to the current matters before court, we aim to anticipate the order(s) expeditiously,” said Tayob.

Viewed: 5240

Andries van Zyl

Andries joined the Zoutpansberger and Limpopo Mirror in April 1993 as a darkroom assistant. Within a couple of months he moved over to the production side of the newspaper and eventually doubled as a reporter. In 1995 he left the newspaper group and travelled overseas for a couple of months. In 1996, Andries rejoined the Zoutpansberger as a reporter. In August 2002, he was appointed as News Editor of the Zoutpansberger, a position he holds until today.

More photos...