North West businessman and his company fined for fraud and contravening tax laws
North West businessman, Arthur Vuzimuzi Jubeta, 37, and his company, VAJ Construction and Trading (PTY) Ltd have been convicted and sentenced on charges of fraud and contravention of the Value Added Tax (VAT) Act.
The duo appeared before the Mmabatho Magistrate’s Court on Monday, according to North West spokesperson for the Directorate for Priority Crime Investigation (Hawks), Warrant Officer Amogelang Malwetse.
“The sentence emanates from the discovery made by South African Revenue Service (SARS) that the company's turnover exceeded R1 million for the 2016 tax period. However, the company never registered for VAT in terms of Section 23 (1) (a) of the Tax Administration Act 28 of 2011,” said the Hawks said in a join statement with the National Prosecuting Authority in North West.
The matter was referred to the Mahikeng-based Hawks' Serious Commercial Crime Investigation Unit for investigation.
In August 2024, Jubeta, who was also representing the company, made his first appearance before court, and following a series of further appearances, he entered into a plea agreement with the State in terms of the Criminal Procedure Act.
Ultimately, VAJ Construction and Trading (PTY) Ltd was fined R20,000 which is wholly suspended for three years on condition that the entity is not convicted of contravening the provisions of the Tax Administration Act during the period of suspension.
Jubeta was also found guilty of fraud and contravention of the Value Added Tax Act and he was sentenced to 12 months imprisonment or R12,000 fine.
Jubeta was additionally slapped with a further fine of R24,000 or 12 months imprisonment which is wholly suspended for a period of three years on condition that he is not convicted for contravening provisions of Tax Administration Act during the period of suspension.
Meanwhile, the North West acting head of the Hawks, Brigadier Silas Munzhedzi and the Director of Public Prosecutions in North West, Dr Rachel Makhari have saluted the investigation and prosecution teams “for ensuring that accused face the full might of the law”.
On Tuesday, IOL reported that the Nelspruit Specialised Commercial Crime Court has convicted and sentenced 40-year-old Smangaliso Innocent Khoza, a director of four companies, for contravening sections of the Prevention of Organised Crime Act (POCA) in relation to money laundering, and the Tax Administration Act.
In 2021, IOL reported that Khoza was among eight people and companies that appeared before the Nelspruit Magistrate’s Court for alleged tax evasion, theft and money laundering. The charge sheet included four companies that were used by individuals in the group.
Initial arrests in the case were made in November 2020.
At the time, the Hawks said their investigations revealed that from April 2017, Smangaliso Innocent Khoza and his girlfriend Busisiwe Prudence Nkosi, the sole directors of Madam and Eve General Trading, submitted fraudulent tax returns to the South African Revenue Service, causing an actual loss of more than R2 million.
IOL