A COMPANY DIRECTOR AND AN ACCOUNTANT WERE SENTENCED FOR TAX EVASION
The Pretoria Specialised Commercial Crimes Court sentenced Mabidi Livingstone Mashele (40), his company Hoxana Trading PTY LTD, and the company accountant Sizakele Makgoba (42), to a fine of R1 million collectively and a further 6 years imprisonment each, suspended for 5 years on condition that they are not convicted of tax evasion. The magistrate ordered them to pay their fines before 30 December 2022.
This is after they were convicted of three counts of tax evasion worth more than R400000. During the VAT period of March 2016, September 2017, and November 2017, the company rendered taxable services to different local municipalities and received payments of over R 5 million. However, from the payments received the company submitted zero returns to the South African Revenue Services (SARS). They were summoned to appear in court on 08 June 2021, and pleaded guilty, after SARS instituted an investigation against the company.
In aggravation Adv. Tumelo Mokoena, told the court that the offences were committed against the fiscus which affects the citizens of South Africa, especially the poor. Moreover, often it is impossible to detect these types of offences until it is too late when SARS has suffered financial loss.
The NPA welcomes the sentence.
