ROODEPOORT MAN SENTENCED FOR FRAUDULENT TAX REFUNDS
The Johannesburg Specialised Commercial Crimes Court sitting in Palm Ridge sentenced 41-year-old, Anwar Gaffor to 45 years of direct imprisonment for three counts of fraud. The court ordered that the sentences imposed on counts two and three must run concurrently with the sentence on count one, resulting in an effective imprisonment term of 15 years.
Gaffor and his company, Ceiling and Partitioner Installers (PTY) LTD were charged with three counts of fraud. During the period 09 September 2019, the accused submitted fictitious Value Added Tax (VAT) 201 returns to the South African Revenue Service (SARS). He unduly benefitted from VAT refunds worth over R2.9 million.
Any person who carries on any enterprise is compelled under certain conditions to register for VAT with SARS. Once registered, the entity is then referred to as a VAT Vendor, and as such VAT must be collected from suppliers of goods and services. This is referred to as Output Tax. The VAT Vendor is also able to deduct VAT on a variety of expenses, including capital and operating costs, as long as they are necessary to advance the business and are permitted under the VAT Act. This is referred to as Input Tax. Every second month the Vendor must submit to the Commissioner VAT returns referred to as VAT 201, accounting for both Output and Input Tax. SARS relies on the integrity and honesty of each VAT Vendor when it comes to administering the amount payable to SARS or refundable to VAT Vendor. Gaffor used false or fictitious tax invoices that were purported to be from different entities, to substantiate or support the claims for VAT refunds.
The NPA commends Advocate Lebohang Jobo and Investigating Officer Constable Phesheni for ensuring that the accused faces the might of the law for abusing the confidence SARS entrusted in him as a VAT Vendor and hopes that the sentence given will dissuade people from evading tax liability through criminal conduct. SARS Commissioner Mr. Edward Kieswetter expressed his appreciation to NPA and the Criminal Investigation team within SARS for their cooperation that led to this excellent outcome. He warned taxpayers who willfully transact with the organisation with the view to defraud SARS that the organisation will relentlessly pursue those with criminal intent.
