An investigation by the Directorate for Priority Crime Investigation, also known as the Hawks, has resulted in the conviction of 58-year-old Malcolm Kgosietsile Lesolang on seven counts of fraud.
Gauteng spokesperson for the Hawks, Lieutenant Colonel Lloyd Ramovha said the case was reported at the Johannesburg central police station in February 2022.
“This case involved fraudulent Value Added Tax (VAT) invoices submitted to claim undue VAT refunds, resulting in a financial loss of over R7.4 million to the South African Revenue Service (SARS),” said Ramovha.
The Palm Ridge Specialised Commercial Crime Court sentenced Lesolang on Monday.
“He was sentenced to a R100,000 fine or 10 years imprisonment, suspended for five years on the condition that no further fraud is committed during the suspension period,” said Ramovha.
Get your news on the go, click here to join the IOL News WhatsApp channel.
In another case, following a Hawks investigation, a juristic person, Nompumelelo Investment and Holding Trading Pty Ltd was convicted on 50 counts, including failure to submit VAT returns, Pay As You Earn (PAYE), Corporate Income Tax (CIT), Income Tax Returns (ITR14) for the period of November 2020 to 2021.
“SARS sustained a loss of R50,000 as a result of the entity's directors failing to comply with tax directives,” said Ramovha.
The convicted company was sentenced to pay a fine of R50,000 as admission of guilt for all counts combined.
“These cases were initiated after SARS identified irregularities and filed complaints, enabling the DPCI (Hawks) to launch thorough investigations and bring the accused to justice,” said Ramovha.
"The DPCI commends its investigative team for their dedication to upholding the rule of law. SARS is also recognized for its vital role as the complainant in these matters, demonstrating its ongoing commitment to safeguarding the country’s revenue system."
Ramovha said the Hawks and SARS reaffirm their zero-tolerance approach to tax evasion and fraudulent activities. He reiterated that such criminal actions undermine the nation’s economic stability and development.
jonisayi.maromo@iol.co.za
IOL