GQEBERHA – Fraudulent VAT claims amounting to approximately R4.7 million have resulted in a conviction in a complex commercial crime case investigated by the Gqeberha Serious Commercial Crime Investigation of the Hawks.

The case involved the alleged fraudulent manipulation of VAT returns and the falsification of supporting financial documentation.

According to Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana, on 18 August, Sipho Christian Tys (54), a sole proprietor of Lisolanele Trading Enterprises CC, appeared before the Gqeberha Specialised Commercial Crime Court, where he pleaded guilty to charges of fraud, forgery and contraventions of the Tax Administration Act.

“Between 2015 and 2017, Tys submitted fraudulent VAT returns to the South African Revenue Service (SARS) on behalf of his business entity,” he said. “During an audit, SARS identified discrepancies in the returns and subsequently lodged a complaint with the Hawks for further investigation.”

Mhlakuvana added that the investigation established that irregularities were present in VAT returns submitted through the SARS e-filing system during the period in question.

A detailed examination of documentary records revealed that invoices and bank statements submitted by Tys in support of the VAT declarations had been fabricated.

He added that further investigation uncovered a deliberate pattern of documentary manipulation and fraudulent tax reporting, which culminated in fraudulent VAT claims amounting to approximately R4.7 million.

“Following a thorough investigation by the Hawks, Tys was arrested in 2021 and appeared in court, where he was released on R5 000 bail,” Mhlakuvana said. “He subsequently made several court appearances before ultimately pleading guilty to fraud, forgery and contraventions of the Tax Administration Act.”

He added that following his conviction, the matter was postponed to 16 October for sentencing.

ALSO READ: Company, director appear in court for R5.5 million vat fraud