Soweto woman sentenced to 15 years imprisonment for R1m VAT fraud

Nokuthula Nene was convicted on 25 counts of fraud, after she submitted fraudulent VAT returns to SARS, valued over R1m from 2008.

Nokuthula Nene was convicted on 25 counts of fraud, after submitted fraudulent VAT returns to SARS, valued over R1m from 2008.

Pretoria – The Joburg Specialised Commercial Crimes Court has sentenced Soweto resident, Nokuthula Cynthia Nene, to 15 years imprisonment, for VAT fraud.

“Seven years of the sentence were suspended for five years, on condition that the accused is not convicted of committing fraud during the period of suspension,” Gauteng regional spokesperson for the National Prosecuting Authority (NPA), Phindi Mjonondwane said.

“Nene was convicted of 25 counts of fraud, in that she fraudulently submitted VAT 201 returns to the South African Revenue Service (SARS), on behalf of a company called Nokune Trading CC, to the value of over an R1 million, during the periods of July 2008 to July 2012.”

Mjonondwane said a business entity is “compelled under certain conditions” to register for VAT with SARS. The business entity is then referred to as a VAT vendor, and it must levy VAT on the supply of goods and services.

“Every VAT vendor must submit periodic returns to SARS, accounting for both input and output tax. SARS places upon the bona fides and honesty of each VAT vendor, to calculate and administer the amount payable to SARS or refundable to the VAT vendor, on a basis of trust between SARS and the VAT vendor,” she said.

“SARS requested tax schedules and supporting documents from the accused (Nene), to substantiate the VAT refund claims but the accused failed, refused, or neglected to submit the required supporting documents, which then prompted an investigation to be conducted by SARS’s criminal investigator Donovan Kakora.”

The investigation revealed that Nokune Trading CC, was not trading and the only transactions into the bank accounts used by the entity, were VAT refund deposits from SARS.

Arguing for the imposition of direct imprisonment, senior State advocate Mzuhleli Mcosini told the court that “fraud committed against SARS or the fiscus also prejudiced the larger South African community”.

The NPA has “acknowledged the sentence because tax-related offences hurt the country’s fiscus, and directly affect service delivery and hopes that it will serve to encourage VAT vendors not to abuse the level of trust placed on them by SARS”.

Mjonondwane said the NPA remains committed to maintain sustainable and fruitful relations with the SARS.

IOL