GQEBERHA – A business owner and his company have been sentenced in connection with fraudulent VAT claims worth approximately R4.7 million.

The Gqeberha Hawks Serious Commercial Crime Investigation team has secured the sentencing of Sipho Christian Tys (54) and his business entity, Lisolanele Trading Enterprises, in connection with fraudulent Value-Added Tax (VAT) claims amounting to approximately R4.7 million.

The sentence was handed down by the Specialised Commercial Crime Court in Gqeberha on Friday 16 October.

How the fraud unfolded

The case stems from a Hawks investigation into the submission of fictitious VAT returns between 2015 and 2017. Lisolanele Trading Enterprises, a construction company of which Tys is the sole proprietor, was implicated in the matter.

During the investigation, invoices and other documents submitted to the South African Revenue Service (SARS) through its eFiling platform were found to have been fabricated. The documents were used to support fraudulent VAT claims amounting to approximately R4.7 million.

SARS identified discrepancies in the submitted documentation and referred the matter to the Hawks for further investigation.

“The investigation culminated in the arrest of the accused in 2023. They subsequently appeared in court and were released on bail of R2 000. The accused made numerous court appearances before their sentencing,” the Hawks said in a statement.

The sentencing

On 16 October, Tys and the company appeared before the Specialised Commercial Crime Court in Gqeberha, where they were sentenced on multiple counts of fraud and forgery, as well as charges relating to contraventions of the Tax Administration Act.

Tys was sentenced to eight years’ imprisonment, wholly suspended for five years, on condition that he is not convicted of fraud or forgery committed during the suspension period.

The court further ordered Tys to repay SARS R1 245 261.58. According to the supplied sentencing order, the repayment schedule is as follows:

• An initial payment of R20 000 due by 1 December 2026.
• Monthly instalments of R20 000 thereafter.
• A final payment of R18 061.58, due on 1 November 2031.

For contravening the Tax Administration Act, Tys was sentenced to three years’ imprisonment, wholly suspended for five years, on condition that he is not convicted of failing to submit income tax returns during the suspension period.

Company also sentenced

Lisolanele Trading Enterprises CC was sentenced to five years’ imprisonment, wholly suspended for five years, on condition that the company is not convicted of fraud or forgery committed during the suspension period.

For contravening the Tax Administration Act, the company was further sentenced to three years’ imprisonment, wholly suspended for five years, on condition that it is not convicted of failing to submit income tax returns during the suspension period.

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