Durban – A company director and an accountant found guilty of tax evasion have been fined R1million collectively.
Mabidi Livingstone Mashele, 40, the director of Hoxana Trading and accountant Sizakele Makgoba, 42, were convicted and sentenced in the Pretoria Specialised Commercial Crimes Court this week.
According to the National Prosecuting Authority’s provincial spokesperson Lumka Mahanjana, the pair were convicted for three counts of tax evasion worth more than R400 000.
Mahanjana said during the VAT period in March 2016, September 2017 and November 2017 the company rendered taxable services to different local municipalities and received payments of more than R5 million.
“However, from the payments received the company submitted zero returns to the SA Revenue Service (Sars).
“They were summoned to appear in court on June 8 2021, and pleaded guilty, after Sars instituted an investigation against the company,” said Mahanjana.
The duo were fined R1m collectively and were ordered by the magistrate to pay their fines by December 30, 2022.
They also received six years imprisonment each, suspended for five years on condition that they were not convicted of tax evasion.
They will effectively serve no jail time.
In aggravation of sentence State advocate Tumelo Mokoena told the court that the offences were committed against the fiscus, which would affect the South African public, especially the poor.
“Moreover, often it is impossible to detect these types of offences until it is too late when Sars has suffered a financial loss,” said Mokoena.
IOL