Durban businessman to appear in court for alleged VAT fraud that caused Sars to lose out on over R1.2 million

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Published Apr 19, 2023

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Durban – The Directorate for Priority Crime Investigation (the Hawks) said a Durban businessman is expected to appear in the Durban Magistrate’s Court next week for contravention of the Value Added Tax Act.

Hawks spokesperson Captain Simphiwe Mhlongo, said on Tuesday that Hawks members from Durban Serious Commercial Crime Investigation served a subpoena on a 51-year-old businessman to appear before court on charges of fraud.

Mhlongo said the accused is the sole member of a Close Corporation that supplied musical instruments to the Department of Arts and Culture from 2013 to 2014.

He said it was alleged that he failed to register as a Value Added Tax (VAT) vendor.

According to Mhlongo, the accused also allegedly provided a VAT number that he was not authorised to use.

“Thus, the accused charged the department R2 313 740.03 VAT and that amount was not declared to the South African Revenue Service (Sars),” he said.

Mhlongo said the accused further submitted a nil income tax return in respect of 2014 and 2015 claiming that his company did not work during the said period.

“As a result Sars suffered a prejudice of R1 228 405.42.,” he said.

Mhlongo said a case of fraud was reported at Point police station and the case docket was allocated to Hawks members for further investigation.

He said the accused was expected to appear in the Durban Magistrate’s Court on April 28.

THE MERCURY