BUSINESSMAN SENTENCED TO FIVE YEARS FOR VAT FRAUD
The Gqeberha Specialised Commercial Crimes Court sentenced Charles Welile Miya (61) to five years direct imprisonment after convicting him on 16 counts of fraud against the South African Revenue Service (SARS) by contravening the Tax Administration Act and the Value-Added Tax Act. Miya is the sole proprietor of Zidilex Trading CC, which traded as “Weza Projects”. The entity, a close corporation, was registered with SARS for VAT purposes in December 2008. As the sole member and representative vendor, Miya, submitted false VAT returns to SARS from the period 2018 to 2020, claiming incorrect input credits and receiving undue refunds. He changed the company’s bank account details without notifying SARS and submitted revised returns without providing supporting documentation. The false returns were submitted electronically, making it difficult for SARS to detect the fraud. SARS’s investigations revealed that Zidilex Trading CC received over R3.7 million in undue refunds, but through swift action, SARS managed to recover over R2.7 million, leaving an actual loss of over R1 million to SARS.
Miya pleaded guilty to committing the crimes. Arguing for an appropriate sentence, State Advocate Ronelle Brink highlighted the alarming increase in white-collar crime in the country, which has far-reaching negative impacts on the economy. It is essential that individuals and businesses prioritise ethical conduct and transparency in their dealings with SARS, she maintained. Regional Court Magistrate Lionel Lindoor agreed, stating that Miya, as a social grant recipient, “bit the hand that feeds him”. Despite Miya’s guilty plea and status as a first-time offender, the magistrate emphasised the need for accountability and deterrent sentencing. Welcoming the sentence, Eastern Cape Director of Public Prosecutions, Barry Madolo, applauded the prosecution, police and SARS internal investigation teams for their meticulous and tireless efforts in bringing the case to court. This case serves as a stark reminder of the consequences of exploiting SARS and the importance of honesty and compliance. Serious commercial crimes threaten the economic stability of the country hence the NPA will channel all its resources to ensure that we adopt an aggressive stance in prosecuting them.
