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Businessman gets 5-year jail term for VAT fraud

Businessman gets 5-year jail term for VAT fraud

Tshwane, 6 October 2021 – A businessman who used false tax invoices in the calculations of VAT Output and Input tax was sentenced to five years direct imprisonment for fraud this week.

The Bloemfontein Regional Court heard that Ntabe Trading & Projects CC and Mr MJ Ntabe provided the South African Revenue Service (SARS) auditors with false supporting documents to substantiate the VAT calculations.

SARS Audit raised additional assessments, which resulted in a total prejudice of R1-million to SARS. The Close Corporation seized operation and only Mr Ntabe was charged and he then pleaded guilty.

On the 21 counts of fraud Mr MJ Ntabe was sentenced to 8 years imprisonment of which 3 years were suspended for 5 years on condition that the accused is not convicted of fraud committed during the period of suspension.

SARS Commissioner Mr Edward Kieswetter noted with concern that the scourge of VAT crime has been on the ascendancy for a long time. “There are companies that are created for the sole purpose of defrauding SARS. This sentence of direct imprisonment must communicate a clear message that SARS has the capacity to detect fraud and make it costly for the perpetrators”. Working with other law enforcement, SARS will continue to bring to book those who commit these of crimes.

For more information, please contact SARS at [email protected]

 

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