Fraudster ordered to pay R2.5 million to SARS, a fine of R300,000 or go to jail! 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, the publication 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.
Fraudster ordered to pay
The couple, who were the alleged ringleaders in the case, recruited family members and friends to register non-existing companies in order to prejudice the tax agency.
The accused in the case were released on bail ranging from R3,000 to R10,000.
On Tuesday, the Directorate for Priority Crime Investigation, also known as the Hawks, said that Khoza after his conviction, was sentenced as follows:
On count one – a charge of contravening the Prevention of Organised Crime Act/money laundering, Khoza was sentenced to 60 months in jail or R30,000 which is suspended for five years on condition that he is not convicted on charges for money laundering during the period of suspension.
Count two to six are five counts of contravention of provisions of the Tax Administration Act.
On count two, Khoza was sentenced to 12 months imprisonment or R60,000 fine.
The court slapped Khoza with a further 18 months imprisonment sentence, which is wholly suspended for a period of five years on condition that he compensates the complainant in the case – the South African Revenue Service, with an amount of R554,085.
On count three, Khoza was sentenced to 20 months imprisonment or a fine of R100,000.
“These counts are taken together for purposes of sentence. A further three years imprisonment is wholly suspended for five years on condition that the accused not be convicted on charges of contravening the provisions of Section 235 (1)(a) of the Tax Administration Act, Act 28 of 2011, committed during the period of suspension,” said Sekgotodi.
On count four, Khoza was sentenced to 12 months imprisonment or R60,000 fine.
“A further four years imprisonment was given, which is wholly suspended for five years on condition that accused compensates the complainant, the SARS in the total amount of R1,980,595,” said Sekgotodi.
Count 7 to 12 relate to six charges of contravening the Prevention of Organised Crime Act, in terms of money laundering.
On count seven, Khoza was sentenced to 60 months imprisonment or R30,000 fine of which half is suspended is suspended for five years.
On count 8, 11, and 12, Khoza was sentenced to 120 months imprisonment or R60,000 fine of which half is suspended for five years on conditions.
On count 9 and 10, Khoza was sentenced 40 months imprisonment or R40,000 of which half is suspended for five years.
Additionally, the court also ordered that Khoza pays an amount of R300,000 fine to the State.
For the State, advocate Kobus Van Der Walt submitted application for a confiscating order for Khoza’s assets to be forfeited.
Sekgotodi said an inquiry will be held on companies linked to Khoza, for the entities to be blacklisted by the South African Revenue Service, blocking them from rendering any service.
The Hawks added that the case against beneficiaries of the criminal activities was postponed to November 26 2024 for possible plea.
Meanwhile, the provincial head of the Hawks in Mpumalanga, Major General Nicholas Gerber has applauded the investigating officer in the case “for the quality of investigations carried out”, which led to the conviction.
“As the Hawks, we shall carry out our mandate by preventing, combating, and investigating all national priority crimes, without fear or favour,” said Gerber.
He also saluted the prosecution team for the “good and pleasing” sentence imposed on the accused.
“We believe that this type of sentence will send a clear message to would-be fraudsters,” said Gerber.
The post Fraudster ordered to pay R2.5 million to SARS, a fine of R300,000 or go to jail appeared first on News365.co.za.
Zim Instantly via Simplex Solutions