CAPE TOWN – A former South African Revenue Service (SARS) employee who used his insider knowledge to defraud the tax authority of R1.58 million has been sentenced to six years in prison by the Bellville Regional Court.
Michael Benson, a registered tax practitioner who once worked as a VAT auditor for SARS, was convicted on multiple charges including fraud, forgery, and failing to maintain proper records. His elaborate scheme involved submitting 11 fake VAT returns over 25 months, claiming refunds based on completely fabricated information.
Benson worked as a VAT auditor and compliance officer at SARS from 1997 to 2000, where his job was to ensure taxpayers followed tax laws. During the period of his crimes, he was still a qualified and registered tax practitioner with both SARS and the South African Auditors Board.
Using his professional knowledge, Benson submitted false VAT201 returns claiming R1.7 million in refunds. SARS paid out R1.58 million into his bank account before discovering the fraud and blocking his final claim.
When SARS auditors requested supporting documents for his claims, Benson didn’t admit wrongdoing. Instead, he doubled down, creating fake invoices, forged bank statements, and fabricated municipal contracts to justify the fraudulent refunds.
“The accused did not voluntarily stop his unlawful conduct. This occurred solely due to SARS intervention,” said State Advocate Wimpie Els, who prosecuted the case. “Even after detection, he persisted in his fraudulent scheme by fabricating additional false documents.”
Despite Benson’s later plea for leniency, the court found his actions were deliberate and carefully planned. He was convicted on 87 separate charges ranging from fraud to forgery.
The court sentenced him to 10 years for fraud, of which four are suspended. Additional sentences for forgery and document fraud were suspended, and he received a R4,000 fine for poor record-keeping.
Els said that Benson’s professional background made his crimes particularly serious. “The accused, being a professional bound by statutory and ethical obligations to render loyal, honest, and truthful services to SARS, instead elected to act unlawfully for personal enrichment,” he argued.
Benson has made no effort to repay the stolen money since his crimes were discovered.
Beyond prison time, Benson has been declared unfit to possess firearms, and authorities have been authorised to seize any weapons, licenses, or permits in his possession.
The National Prosecuting Authority (NPA) welcomed the sentence as sending a clear message. “This sentence demonstrates that the NPA will not tolerate fraud, abuse of public trust, or the manipulation of tax systems for personal gain,” they said in a statement.
The case serves as a warning to other tax professionals who might consider similar schemes. The court stated that participation in efforts to defraud SARS will result in severe penalties, including imprisonment, with no opportunity to avoid jail time through repayment or fines.
“Tax practitioners are reminded that their professional services are rendered for remuneration, not for illegal self-enrichment,” the prosecution noted. “Those who deviate from lawful practice will inevitably face prosecution and imprisonment.”
