Johannesburg - The Johannesburg Specialised Commercial Crimes Court sitting in Palm Ridge sentenced a fraudster to 45 years of direct imprisonment.
The court ordered that the sentences imposed on Anwar Gaffor, 41, on counts two and three must run concurrently, with the sentence on count one, resulting in an effective imprisonment term of 15 years.
NPA Gauteng spokesperson Phindi Mjonondwane said Gaffor and his company, Ceiling and Partitioner Installers (PTY) LTD, were charged with three counts of fraud.
During the period of September 9, 2019, the accused submitted fictitious Value Added Tax (VAT) 201 returns to the South African Revenue Service (Sars).
He unduly benefited from VAT refunds worth over R2.9 million.
Mjonondwane said any person who carries on any enterprise is compelled, under certain conditions, to register for VAT with Sars. Once registered, the entity is then referred to as a VAT Vendor, and as such, VAT must be collected from suppliers of goods and services. This is referred to as the output tax.
The VAT Vendor is also able to deduct VAT on a variety of expenses, including capital and operating costs, as long as they are necessary to advance the business and are permitted under the VAT Act. This is referred to as input Tax. Every second month, the Vendor must submit to the Commissioner VAT returns, referred to as VAT 201, accounting for both Output and Input taxes.
Sars relies on the integrity and honesty of each VAT Vendor when it comes to administering the amount payable to Sars or refundable to the VAT Vendor. Gaffor used false or fictitious tax invoices that were purported to be from different entities to substantiate or support the claims for VAT refunds.
‘’The NPA commends Advocate Lebohang Jobo and Investigating Officer Constable Phesheni for ensuring that the accused faces the might of the law for abusing the confidence Sars entrusted in him as a VAT Vendor and hopes that the sentence given will dissuade people from evading tax liability through criminal conduct. Sars Commissioner Mr Edward Kieswetter expressed his appreciation to the NPA and the Criminal Investigation Team within Sars for their cooperation that led to this excellent outcome’’ said Mjonondwane.
Kieswetter warned taxpayers who wilfully transacted with the organisation with the view to defraud Sars that the organisation would relentlessly pursue those with criminal intent.
The Star