A company director who submitted false tax returns to the South African Revenue Service (Sars), was slapped with a suspended sentence alongside the company. This is despite the revenue collector being prejudiced and suffering a financial loss close to R1 million.
The Bloemfontein Magistrates’ Court imposed suspended sentences on both the director, Lerato Michael Mphana (37), and the company, Mphana and Makae General Trading.
A five years’ imprisonment sentence was handed down on Thursday, 5 October. The court found the accused guilty on the charge of contravention of the tax administration act.
The outcome favouring the revenue services is a result of an investigation by the Hawks’ Serious Commercial Crime Investigation team in the Free State.
Lt Col. Zweli Mohobeleli, provincial spokesperson of the Hawks, said Sars discovered discrepancies of false tax returns during its investigation. He said further probing revealed that Mphana submitted false tax return documents during the 2015/’16 tax season.
Mohobeleli said the accused was not ordered to reimburse the revenue services.
Following this, Maj. Gen. Mokgadi Bokaba, provincial head of the Hawks, has strongly warned tax evaders that tough action will be taken.
“As we near the October deadline, we would like to urge everyone to be honest with their submissions. Failure to disclose truthfully may result in arrest and prosecution,” said Bokaba.
