TWO BUSINESSMEN IN COURT FOR TAX FRAUD

TWO BUSINESSMEN IN COURT FOR TAX FRAUD

BLOEMFONTEIN: Two businessmen from Gauteng were released on bail of R10 000 each, after they appeared in the Bloemfontein Magistrates’ Court facing 35 counts of tax fraud.

Khothatso Isaac Moletsane (48) and Tumelo Peter Moletsane (54) were charged together with their company, Mol Pro Consulting Pty Ltd for defrauding the South African Revenue Services of approximately R116.7 million by under-declaring the trading activities of their company.

The state evidence is that between December 2011 and May 2019, the two businessmen, who were the directors of Mol Pro Consulting, allegedly submitted nil returns to SARS, on behalf of their company, by misrepresenting the trading activities of the company.

Between February 2014 and September 2016, they under-declared the VAT Income of the company in VAT 201 when they allegedly submitted their company tax return, prejudicing SARS to an amount of approximately R34.5 million. Both the VAT 201 and the Company Income tax were submitted through e-Filing. The company had, however, done business with the municipalities and government departments and the money was deposited into the bank accounts of the company.

Between July 2017 and February 2019, they under-declared the trading activities of their company when they allegedly submitted VAT 201, and this prejudiced SARS to an amount of R7.7 million.

In 2018, they allegedly declared a nil return when they submitted Company Income Tax return, whereas the company traded and received a total of R61.2 million and the income tax that was due to SARS was R17 million which was not paid because of the misrepresentation.

In February 2019, when they submitted the VAT 201 of their company, they allegedly over-stated the Input Tax and prejudiced SARS to an amount of R33.7 million. They allegedly under-declared the VAT Income and Income Tax of their company and over-stated the tax returns submitted to SARS with the intention to evade the payment of the Value Added Tax and Company Income tax that was due and payable to SARS.

The total amount involved is R116.7 million, made up of R83 million of actual prejudice and R33.7 million of potential prejudice. The case against the accused was postponed to 16 March 2023 for representations.