The businessman submitted fraudulent VAT returns via the South African Revenue Service (Sars) e‑filing system.
The South African Revenue Service (Sars). Picture: Gallo Images/Fani Mahuntsi.
A complex tax fraud scheme worth nearly R4.7 million has ended in conviction after the Hawks’ Serious Commercial Crime Investigation unit in Gqeberha exposed fraudulent VAT claims and falsified financial records.
On 18 August 2026, 54-year-old Sipho Christian Tys, sole proprietor of Lisolanele Trading Enterprises CC, pleaded guilty in the Gqeberha Specialised Commercial Crime Court to charges of fraud, forgery, and contraventions of the Tax Administration Act.
VAT returns
It is understood that between 2015 and 2017, Tys submitted fraudulent VAT returns via the South African Revenue Service (SARS) e‑filing system.
According to the Hawks, this was supported by fabricated invoices and bank statements. The irregularities were flagged during a SARS audit, which led to a Hawks investigation.
Financial crime
Hawks spokesperson Ndiphiwe Mhlakuvana said the case demonstrated the unit’s determination to root out sophisticated financial crime.
“Our investigation revealed a deliberate pattern of documentary manipulation and fraudulent tax reporting. This was not a minor lapse – it was a calculated scheme to defraud the state.”
He added that investigations are ongoing.
“The Hawks will continue to work closely with SARS to ensure that those who manipulate tax systems for personal gain face the full might of the law.”
Arrest
Tys was arrested in 2021 and released on R5 000 bail, making several court appearances before his guilty plea.
Mhlakuvana said the matter has been postponed to 16 October 2026 for sentencing.
Warning
He emphasised that the conviction sends a clear message to those who are intent on economic crimes.
“Economic crimes undermine the integrity of our financial systems and rob the country of vital revenue. We will not allow individuals to enrich themselves at the expense of the public.”
The Hawks said the case highlights the importance of vigilance in detecting irregularities and the effectiveness of collaboration between SARS and law enforcement in tackling commercial crime.
