Bechan and Another v SARS Customs Investigations Unit and Others

SARS obtained an ex parte search and seizure warrant under ss 59 and 60 of the Tax Administration Act 28 of 2011 in relation to suspected tax offences by Bullion Star (Pty) Ltd. The warrant authorised a search of specified premises in Rivonia. During execution, SARS officials searched a Toyota Fortuner parked on the premises and belonging to Mr Kapeel Bechan, a third party, after observing files and electronic equipment inside and suspecting they were relevant to Bullion Star. Various items, including laptops and cellular phones, were seized. The appellants sought return of some items via the mandament van spolie, alleging unlawful dispossession because the items belonged to them as third parties and were seized from a vehicle, not Bullion Star’s premises. The High Court dismissed the application, and the appellants appealed to the Supreme Court of Appeal.

The appeal was dismissed with costs, including the costs of two counsel.

The case clarifies the scope of SARS’ search and seizure powers under the Tax Administration Act, confirming that such warrants are location-based and may be executed against third parties on the premises. It strengthens SARS’ investigative capacity by confirming that vehicles and property of third parties may be searched on reasonable suspicion, thereby reinforcing the effectiveness of tax enforcement mechanisms in South African law.