40-year-old man sentenced by Nelspruit Specialised Commercial Court for tax fraud
The convicted was handed down sentences ranging from 12 to 120 months in prison and multiple fines which add up to almost R400 000.
A 40-year-old man was sentenced by the Nelspruit Specialised Commercial Court on November 8 for defrauding SARS. Simangaliso Innocent Khoza was found guilty of contravening the Tax Administration Act.
He was handed down various sentences which range from 12 to 120 months in prison, as well as multiple fines which add up to almost R400 000.
According to Mpumalanga Hawks’ spokesperson, Dineo Sekgotodi, Khoza was convicted of the following charges:
Count 1: One charge of contravening Section 6(a) of the Prevention of Organised Crime Act, Act 121, money laundering, for which he was sentenced a R30 000 fine or 60 months’ imprisonment, which was suspended for five years on the condition that the he should not be convicted on charges of the same crime during the period of suspension.
Counts 2 to 6: Five charges of contravening the provisions of Sections 235(1)(a) of the Tax Administration Act. He was sentenced to a R60 000 fine or 12 months’ imprisonment, including a further 18 months imprisonment, which was wholly suspended for a period of five years on condition that he compensates the complainant, SARS, an amount of R554 085.22.
Additionally he was sentenced to a R100 000 fine or 20 months’ imprisonment.These counts are taken together for purposes of sentence. He was sentenced to a further three years’ imprisonment, which was wholly suspended for five years on condition that he is not convicted on charges of the same crime during the period of suspension.
Khoza was also sentenced to a R60 000 fine or 12 months’ imprisonment as well as a further four years imprisonment, which was wholly suspended for five years on condition that he compensates SARS the amount of R1 980 595.50.
Counts 7 to 12: Six charges of contravening Section 4(b) read with Sections 1 and 8 of the Prevention of Organised Crime Act, Act 121 of 1998, money laundering. The sentence is a R30 000 fine or 60 months’ imprisonment of which half, R 15 000 or 30 months’ imprisonment, was suspended for five years on condition that accused not be convicted on charges of contravening Section 4 of the Prevention of Organised Crime Act, Act 121 of 1998, money laundering, committed during the period of suspension.
Additionally he was sentenced to a R 60 000 fine or 120 months’ imprisonment of which half was suspended for five years on condition that accused not be convicted on charges of contravening Section 4 of the Prevention of Organised Crime Act, Act 121 of 1998, money laundering, committed during the period of suspension.
These counts are taken together for the purpose of the sentence.
And lastly he was sentenced to a R40 000 fine or 40 months’ imprisonment, of which half was suspended for five years on condition that he should not be convicted on charges of contravening Section 4 of the Prevention of Organised Crime Act, Act 121 of 1998 committed during period of suspension.
Khoza, a director of four companies, namely Simangalesibusizwe Trading Enterprise cc, Madam and Eve General Trading, Khuzudumo Trading and Ngcebo Empire Projects, was initially found guilty and convicted of money laundering and contravening the Tax Administration Act on June 10.
Sekgotodi added that Khoza was accused of receiving undue refunds from SARS.
“It is alleged that during April 2017, the Hawks Nelspruit-based Serious Commercial Investigation established that Khoza, as an e-filer, was able to electronically submit returns on behalf of Simangalesibusizwe Trading Enterprises as well as Ngcebo Empire Projects to SARS.”
“Khoza was the only signatory on the business accounts of Simangalesibusizwe Trading Enterprise and Ngcebo Empire Projects, as well as both business accounts of Khuzudumo Trading. The companies received undue refunds to the amount of R990 297.75 for the 2013 tax year into their FNB business account,” Sekgotodi explained.
She added that during the investigation it was established that Khoza’s partner, Prudence Nkosi, was the sole member of Madam and Eve General Trading which was registered at SARS as an e-filler.
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The company in question misrepresented to SARS and failed to provide proof on the declaration made on the 2013 income returns in order to obtain undue tax refunds.
“Madam and Eve General Trading received an undue refund to the amount of R986 686.12 into its Standard Bank business account for the 2013 tax year.”
She revealed that in 2014, Khoza obtained an undue tax refund resulting actual losses to SARS amounting to R995 307.56 and R990 297.75, as well as potential losses amounting to almost R41m.
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The acting provincial police commissioner, Major General Dr Zeph Mkhwanazi, applauded the investigator for the quality of the investigation carried out.
“We believe that this type of sentence will send a clear message to would-be fraudsters,” Mkhwanazi said.
