Company director sentenced to five years in jail for tax fraud

The Johannesburg specialised commercial crimes court on Thursday convicted and sentenced a 52-year-old company director to five years’ imprisonment for fraudulently evading tax amounting to more than R300,000.

Tshepo Molefe and his company, Bathlopi Construction and Projects Close Corporation, faced charges of fraud, theft and contravention of the Tax Administration Act.

The company, represented by Molefe, was fined R50,000, fully suspended for five years.

“Investigations by Sars and police constable Simphiwe Pesheni revealed that during the July to August 2020 tax period, amid the Covid-19 pandemic, the Gauteng department of health contracted Bathlopi to supply personal protective equipment.

“Bathlopi received R2,374,750 for the contract, including VAT of over R300,000,” National Prosecuting Authority spokesperson Phindi Mjononondwane said.

She said when Molefe filed the company’s tax return for the period, he fraudulently declared a nil return, falsely claiming no VAT was incurred.

This led to Sars suffering a financial loss exceeding R300,000.

She said senior state advocate Nerissa Reddy called a Sars investigator to deliver a victim impact statement, emphasising the financial harm caused by the fraud.

“The court was presented with calculations demonstrating how the unpaid VAT could have funded vital social services, such as child and pensioner grants.”

Mjonondwane said the court found that Molefe had deliberately misled Sars, falsely claiming no income or VAT was received.

“The NPA welcomes this sentence as a strong deterrent against tax evasion and the misuse of public funds, especially during critical times of crisis.”

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