Defence lawyers for two alleged Gupta associates accused of tax fraud have raised objections against the testimony of a director of DSV, a clearing agent which took over UTI Worldwide operations in 2016.
DSV’s executive vice-president for the Middle East and Africa Gordon Wyatt was the witness in the trial of Kamal Vasram and Saliesh Indurjeeth which resumed in the Pretoria magistrate’s court on Monday.
The two men are charged with fraud.
The state alleges they unlawfully told UTI SA they were importing new dairy equipment worth about $3.4m (R37m) from a supplier in the UAE in 2014.
The suspected overpriced pasteurising plant, which was imported from India, was invoiced to Estina by Gateway Limited in the UAE. Evidence in the public domain suggests Gateway was used and controlled by the Guptas as a conduit to launder money and extract funds from SA.
The state further alleges the overstated or inflated value was intentionally and unlawfully used by Estina and its sole director Vasram to launder funds from SA.
The men also face charges of contravening the International Trade Administration Act and exchange control regulations.
After Wyatt was sworn in and as he was about to answer a question by the prosecution, Jaap Cilliers SC, for Vasram, raised an objection to Wyatt’s testimony.
DSV took over UTI and acquired the businesses of UTI across the world, including the South African business in 2016. Cilliers said at the time of the transaction in 2014, DSV was not in control of UTI.
“This witness says as the result of the takeover, certain documents of UTI became the property of DSV. What qualifies this witness to testify as to the purpose of the documentation and inferences to be drawn? He is not the author of the document. On what basis can this witness explain documentation?
” Cilliers said.
His objection was that inferences to be drawn by Wyatt were not relevant and therefore inadmissible.
Despite his objection, the court allowed Wyatt to continue his testimony.
Wyatt testified about information a clearing agent needs to process an import application. He said the information about the description of goods to be imported comes from the importer.
He said the clearing instruction for this import was an instruction from the importer on how the clearing agent should proceed with the import. This document was filed by the importer, not the clearing agent.
The information provided by Estina was that the shipper was Gateway Limited in the UAE and the consignee was Estina in Vrede. He said the document showed this was a package of nine containers containing dairy equipment.
The information provided by the importer indicated this was new equipment.
Wyatt said the clearing agent depends on the information provided by the customer.
During cross-examination, Cilliers said Wyatt was not involved with UTI during the transaction and he was not an employee of UTI and was not an employee of DSV. Wyatt agreed.
Cilliers said Sars knew from the information provided the equipment came from India and knew of the estimated date of arrival of the containers and knew there would be nine containers.
“The clearing agent knew what equipment was to be imported and the clearing agent disclosed that information to Sars.”
Cilliers said the calculation of duties and taxes was done by the clearing agent and the importer’s obligation was to arrange for the payment of taxes, which was done in this instance by the payment of a R5.8m in VAT by Estina.
– TimesLIVE
Court however allows witness to continue
Defence in Estina tax fraud case raise objections to testimony of new witness
Image: National Prosecuting Authority
Defence lawyers for two alleged Gupta associates accused of tax fraud have raised objections against the testimony of a director of DSV, a clearing agent which took over UTI Worldwide operations in 2016.
DSV’s executive vice-president for the Middle East and Africa Gordon Wyatt was the witness in the trial of Kamal Vasram and Saliesh Indurjeeth which resumed in the Pretoria magistrate’s court on Monday.
The two men are charged with fraud.
The state alleges they unlawfully told UTI SA they were importing new dairy equipment worth about $3.4m (R37m) from a supplier in the UAE in 2014.
The suspected overpriced pasteurising plant, which was imported from India, was invoiced to Estina by Gateway Limited in the UAE. Evidence in the public domain suggests Gateway was used and controlled by the Guptas as a conduit to launder money and extract funds from SA.
The state further alleges the overstated or inflated value was intentionally and unlawfully used by Estina and its sole director Vasram to launder funds from SA.
The men also face charges of contravening the International Trade Administration Act and exchange control regulations.
After Wyatt was sworn in and as he was about to answer a question by the prosecution, Jaap Cilliers SC, for Vasram, raised an objection to Wyatt’s testimony.
DSV took over UTI and acquired the businesses of UTI across the world, including the South African business in 2016. Cilliers said at the time of the transaction in 2014, DSV was not in control of UTI.
“This witness says as the result of the takeover, certain documents of UTI became the property of DSV. What qualifies this witness to testify as to the purpose of the documentation and inferences to be drawn? He is not the author of the document. On what basis can this witness explain documentation?
” Cilliers said.
His objection was that inferences to be drawn by Wyatt were not relevant and therefore inadmissible.
Despite his objection, the court allowed Wyatt to continue his testimony.
Wyatt testified about information a clearing agent needs to process an import application. He said the information about the description of goods to be imported comes from the importer.
He said the clearing instruction for this import was an instruction from the importer on how the clearing agent should proceed with the import. This document was filed by the importer, not the clearing agent.
The information provided by Estina was that the shipper was Gateway Limited in the UAE and the consignee was Estina in Vrede. He said the document showed this was a package of nine containers containing dairy equipment.
The information provided by the importer indicated this was new equipment.
Wyatt said the clearing agent depends on the information provided by the customer.
During cross-examination, Cilliers said Wyatt was not involved with UTI during the transaction and he was not an employee of UTI and was not an employee of DSV. Wyatt agreed.
Cilliers said Sars knew from the information provided the equipment came from India and knew of the estimated date of arrival of the containers and knew there would be nine containers.
“The clearing agent knew what equipment was to be imported and the clearing agent disclosed that information to Sars.”
Cilliers said the calculation of duties and taxes was done by the clearing agent and the importer’s obligation was to arrange for the payment of taxes, which was done in this instance by the payment of a R5.8m in VAT by Estina.
– TimesLIVE
Would you like to comment on this article?
Register (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Trending
Latest Videos