A former South African Revenue Service (SARS) employee and registered tax practitioner, Michael Benson, has been sentenced to six years in prison after being found guilty of a large-scale VAT fraud scheme involving falsified tax returns and forged supporting documents.
Benson was sentenced in the Bellville Regional Court following his conviction on multiple charges, including fraud, forgery, uttering, and failing to keep proper records.
According to the National Prosecuting Authority (NPA), the offences occurred over a 25-month period, during which Benson “submitted eleven fraudulent VAT201 returns to SARS, claiming refunds based on wholly fabricated information,” said NPA spokesperson Eric Ntabazalila.
When SARS requested supporting documentation, Benson allegedly produced forged invoices, bank statements, and municipal contracts, escalating the fraud.
Benson’s background in revenue compliance increased the seriousness of the offences. He had previously worked as a VAT auditor and compliance officer at SARS between 1997 and 2000 and remained a registered tax practitioner during the period of the fraud.
During the 25-month scheme, Benson submitted eleven false VAT210 returns, fraudulently claiming R1.7 million. SARS initially paid out R1.58 million before detecting irregularities and blocking the final claim.
The court imposed a 10-year sentence for 37 counts of fraud, suspending four years, leaving Benson with six years to serve. Charges of forgery and uttering resulted in an additional four-year sentence, wholly suspended for five years. He was also fined R4,000 for failing to keep proper records, with that sentence suspended. Benson was declared unfit to possess a firearm, and authorities were authorized to seize all firearms and ammunition in his possession.
The NPA welcomed the ruling, stating it reinforces accountability among professionals entrusted with safeguarding public revenue. Ntabazalila said:
“Those entrusted to uphold the integrity of South Africa’s revenue system have a higher duty to act lawfully and ethically. When they betray that trust, the NPA will act firmly and without hesitation.”
The outcome demonstrates the NPA’s commitment to protecting public funds, safeguarding state revenue, and tackling corruption, regardless of the position or status of the offender.
