Convicted drug kingpin Fadwan Murphy was sentenced to an additional eight years for tax fraud after he failed to submit income tax returns for himself and his company, on top of his 18-year imprisonment for drug-related crimes.
Murphy, who is currently serving an 18-year sentence for drug trafficking, was convicted by the Bellville Magistrate's Court for failing to submit income tax returns for himself and his company, Ulterior Trading Solutions CC.
The court ordered him to either serve the eight-year term or pay a R48,000 fine.
The conviction comprises 16 separate counts, with each carrying a penalty of R6,000 or 12 months direct imprisonment.
Half of each sentence was suspended for five years, resulting in an effective penalty of R3,000 or six months per count.
The tax fraud conviction follows Murphy's earlier sentencing in the Western Cape High Court, where he was found guilty of racketeering, drug dealing, and money laundering.
"The court also fined him R2m after the State successfully argued that his drug dealing came from his greed for money and power and that his actions destroyed communities and the people living in them," said the Western Cape National Prosecuting Authority spokesperson Eric Ntabazalila.
To recover the unpaid fines, the court has ordered the seizure and sale of movable property belonging to Ulterior Trading Solutions CC. Should these proceeds prove insufficient, authorities will pursue the company's immovable assets.
"If the proceeds of the sale are insufficient, a warrant for recovery will be issued against the company’s immovable property," said Ntabazalila.
State prosecutor Advocate Conrad Heydenrych, who secured the plea and sentencing agreement, emphasized that Murphy had failed to meet his obligations under both the Income Tax Act and the Tax Administration Act.
Heydenrych urged that the responsibility to submit accurate tax returns to SARS is a burden that all taxpayers share, when tax returns are not submitted, SARS is unable to assess accurately the taxes owed, resulting in a potential gap in expected revenue.
The court further ordered Murphy to submit all outstanding tax returns to SARS by September 19.
The National Prosecuting Authority welcomed the conviction, stating that tax evasion crimes significantly impact government revenue collection and public spending.
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