Company director sentenced to five years in jail for defrauding Sars

A 52-year-old company director has been convicted and sentenced to five years’ imprisonment for fraudulently evading tax amounting to more than R300 000.

Tshepo Molefe, director of Bathlopi Construction and Projects Close Corporation, appeared in the Specialised Commercial Crimes Court sitting in Palm Ridge on Thursday.

Molefe and his company faced charges of fraud, theft and contravention of the Tax Administration Act.

Investigations

National Prosecuting Authority (NPA) spokesperson Phindi Mjonondwane said the company, represented by Molefe, was fined R50 000, fully suspended for five years on the condition that no further fraud convictions occur during the suspension period.

“Investigations by the South African Revenue Service (Sars) and South African Police Service’s (Saps) Constable Simphiwe Pesheni revealed that during the July to August 2020 tax period, amidst the Covid-19 pandemic, the Gauteng Department of Health (GDOH) contracted Bathlopi to supply personal protective equipment (PPE),” Mjonondwane said.

Bathlopi received R2 374 750 for the contract, including VAT of more than R30 000, Mjonondwane added.

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Court proceedings

Mjonondwane said Molefe then filed the company’s tax return for the period.

“He fraudulently declared a nil return, falsely claiming no VAT was incurred. This led to Sars suffering a financial loss exceeding R300 000.”

She said senior state advocate Nerissa Reddy called a Sars investigator to deliver a victim impact statement, emphasising the financial harm caused by the fraud.

“The court was presented with calculations demonstrating how the unpaid VAT could have funded vital social services, such as child and pensioner grants”

Misleading Sars

Mjonondwane said the court found that Molefe had deliberately misled Sars, falsely claiming no income or VAT was received.

She said Molefe ignored tax relief mechanisms available during the Covid-19 period and misused the VAT owed for personal gain.

“The National Prosecuting Authority welcomes this sentence as a strong deterrent against tax evasion and the misuse of public funds, especially during critical times of crisis,” Mjonondwane said.

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