By Buhle Matsoele
Simangaliso Khoza, a 40-year-old businessman, was sentenced to multiple prison terms and fines totaling almost R400,000 after being convicted for fraud and money laundering in a case related to tax evasion.
The sentencing took place on November 8 at the Nelspruit Specialised Commercial Court, where Khoza was found guilty of contravening the Tax Administration Act and Prevention of Organised Crime Act (POCA).
According to Dineo Sekgotodi, spokesperson for the Mpumalanga Hawks, Khoza was sentenced for various charges, which included multiple fines and prison sentences. These sentences range from 12 months to 120 months in prison, with several suspended terms contingent on compliance with specific conditions, including the payment of large sums to SARS (South African Revenue Service).
Sentences and Fines:
- Count 1 (Money Laundering): Khoza was fined R30,000 or sentenced to 60 months’ imprisonment, with the sentence suspended for five years, provided he stays conviction-free for similar crimes during this period.
- Counts 2 to 6 (Tax Fraud): Khoza received a R60,000 fine or 12 months’ imprisonment, with a further 18 months’ imprisonment suspended for five years, contingent on his repayment of R554,085.22 to SARS.
- Additionally, Khoza was sentenced to a R100,000 fine or 20 months’ imprisonment, alongside a 3-year suspended sentence conditioned on non-conviction of similar offences.
- Counts 7 to 12 (Money Laundering): Khoza received various sentences, including a R30,000 fine or 60 months’ imprisonment (half suspended), as well as a R60,000 fine or 120 months’ imprisonment (half suspended).
- Final Sentence: Khoza was also fined R40,000 or sentenced to 40 months’ imprisonment, with half the sentence suspended for five years.
Khoza, who was a director of Simangalesibusizwe Trading Enterprise, Madam and Eve General Trading, Khuzudumo Trading, and Ngcebo Empire Projects, was initially convicted of money laundering and tax evasion on June 10. The charges stemmed from his involvement in submitting fraudulent tax returns and unlawfully obtaining undue tax refunds from SARS.
The Scheme:
Khoza was found guilty of submitting fraudulent tax returns as an e-filer for several companies. He allegedly facilitated refunds totaling R990,297.75 from SARS for the 2013 tax year, which were deposited into business accounts he controlled. He was the sole signatory on the business accounts of Simangalesibusizwe Trading Enterprise and Ngcebo Empire Projects, as well as accounts for Khuzudumo Trading.
The Hawks’ Nelspruit-based Serious Commercial Investigation team established that Khoza had engaged in the fraudulent submission of tax documents for his companies, enabling them to collect undeserved refunds. His partner, Prudence Nkosi, was also involved as the sole member of Madam and Eve General Trading, which was similarly implicated in the fraud.
Legal Implications:
Khoza’s sentence highlights the growing crackdown on commercial crime and tax fraud in South Africa, particularly cases involving money laundering and evasion of tax obligations. This case underscores the need for strict oversight in business practices and the importance of holding individuals accountable for fraud and financial misconduct.
The sentences and fines reflect the severity of Khoza’s actions and serve as a reminder of the legal consequences of defrauding national revenue services and engaging in illegal financial schemes.
