Durban - An Overport businessman who pleaded guilty to defrauding SARS of R3million in tax fraud has until 2021 to pay them back every cent.
Naushaad Hamid pleaded guilty to tax fraud in the Durban Magistrate's Court on Thursday.
He received an 8 year suspended sentence and was ordered to pay R200 000 immediately to SARS followed by monthly payments of R78 000.
His last payment should be done on August 25, 2021.
In his plea Hamid who owns, Linings by Naushaad and Cerulean Cloud t/a Razatex, said he entered into a scheme with a Mr Lakan and a Shabir Mohamed Ismail whereby they wanted to discuss a scheme whereby fictitious vat returns would be submitted to SARS, which would result in refunds being processed by SARS.
Hamid said he initially resisted any participation in such a scheme, but said that Lakan and Ismail were undeterred and continued to encourage him to be apart of the scheme.
"Eventually he succumed to the temptation when it was made clear to him that if he cooperated with the operation, any proceeds would be split on a 50 /50 basis."
Vat returns for the periods February 2013 and June 2013 were submitted to SARS by e-filing on March 18 2013 and July 2, 2013.
Although Hamid did not do this personally, he agreed that he was part of the scheme.
The first vat refund was valued at R3,6 million and the second was R2,4 million and was paid by SARS into Cerulean Cloud t/a Razatex bank account.
Hamid then admitted that in April 2013 he transferred R1,2 million and then R270 000 to Ismail's bank account.
In July 2013, he then paid him R1,3 million on three different occasions into Ismail's account.
In his plea he acknowledged that his involvement in the scheme was unlawful.