Written by Nadia Khan
Durban businessman Thoshan Panday (51) was arrested on charges related to tax fraud and appeared in the Durban Magistrates Court on Thursday, October 31, 2024. Panday faces 27 counts of fraud in connection with the submission of false tax returns for entities he allegedly controlled.
Panday is accused of submitting fraudulent VAT and income tax returns for businesses that received payments from the South African Police Service (SAPS) in 2010 and 2011. These payments are said to have been linked to services provided by the entities during the build-up to and throughout the 2010 Soccer World Cup. The alleged corrupt relationship between Panday and members of the SAPS Supply Chain Management Division reportedly resulted in approximately R47 million in payments being made to Panday’s entities.
Henry Mamothame, spokesperson for the Investigating Directorate Against Corruption (IDAC), stated that Panday’s tax fraud charges stemmed from false declarations made to the South African Revenue Service (SARS), which led to an estimated R7.3 million in financial prejudice to SARS. These alleged false returns were linked to Panday’s control of various entities receiving funds from the SAPS.
“The State alleges that Panday was in charge of these entities that falsely declared their tax returns, which misled SARS and resulted in substantial financial losses,” Mamothame said.
As part of a coordinated effort to crack down on financial crimes, IDAC and SARS have been collaborating to address tax non-compliance, making it increasingly costly for offenders to evade the law.
Panday is expected to apply for bail in the coming week, with his legal representatives set to argue for his release. In a separate matter, Panday, along with eight co-accused, is facing charges of racketeering, fraud, and corruption in an ongoing case in the Durban High Court. The legal process continues, with further developments expected in the coming weeks.
