Written by
Sinenhlanhla Masilela
Philane, the director of Sipho Zethu Trading, was found guilty of defrauding the South African Revenue Service (SARS) of R955,307.56 between 2013 and 2015. According to Captain Dineo Sekgotodi, spokesperson for the Hawks in Mpumalanga, the accused misrepresented PAYE tax credits, causing significant financial loss to SARS.
The funds were paid into Sipho Zethu Trading’s business account and later diverted into various bank accounts, including Philane’s personal account. Investigations also revealed that he used the proceeds from this fraud to purchase a 2005 Mercedes Benz.
Following SARS’s discovery of the crime, R490,000 was recovered from Philane’s FNB business account. He was fined R300,000 or sentenced to three years in prison for contravening the Tax Administration Act. For money laundering, he was fined R60,000 and sentenced to one year in prison.
As part of the asset forfeiture order, Philane must hand over the Mercedes Benz to SARS, pending its public auction. The funds recovered will be returned to SARS, with an interest rate of 11.25%, calculated from December 2014 when the crime occurred.
