A company director and the bookkeeper, as well as the company, were sentenced for tax fraud in the Kroonstad Magistrates’ Court on 13 October. Charges relate to false misrepresentation that the company never traded between 2016 and 2019.
Balane Joseph Mtimkhulu (63), his company Mminathoko Trading 117 Close Corporation, and bookkeeper Rithondeni Luvhengo (42) were found guilty of tax fraud charges. The court sentenced Mthimkhulu to seven years’ imprisonment and Luvhengo to 12 years. The company was fined R100 000.
WO Fikiswa Matoti, Free State spokesperson of the Hawks, said the sentences were suspended for five years with the conditions that none will be convicted of fraud during said period.
“Mtimkhulu and Luvhengo misrepresented themselves to the South African Revenue Service (Sars), declaring the company never traded. They submitted nil in tax returns. In the process, Sars suffered a loss of more than R1 million,” said Matoti.
She said the Hawks’ Commercial Crime Investigation team in Welkom uncovered the truth, culminating in the sentencing of the two individuals and the company.
Matoti said the Hawks took over the investigation after the revenue services discovered fraudulent submissions.
