Pretoria - Two business owners, Suzan Pheladi Raphela, 32, and Sibusiso Sanele Mhlongo, 29, appeared at the Pretoria Specialised Commercial Crimes Court on Thursday, for allegedly evading tax of more than R10 million.
The National Prosecution Authority (NPA) regional spokesperson Lumka Mahanjana said that the pair is facing a charge of non-registration of VAT, four counts of fraud related to more than R10 million of tax evasion, and six counts of non-submission of tax returns.
Raphela is the director of PSR Solutions (Pty) (Ltd) and Mhlongo is director of SA Business Accountant and Associates.
Mahanjana said Raphela and Mhlongo, through their companies, allegedly defrauded Sars, after PSR Solutions received a personal protective equipment (PPE) tender amounting to R45 million, from the SAPS, on April 3, 2020.
“It is alleged that at the time PSR Solutions received the tender from SAPS, the company was not registered as a VAT vendor. However, when the company eventually registered as a VAT vendor in June 2020, it failed to disclose the R45 million payment received from SAPS and, therefore, did not return its tax value,” said Mahanjana.
Mahanjana added that Raphela’s company declared the VAT amount on the R45 million, after being notified by Sars of an audit being conducted.
“They fraudulently claimed R4.4 million, with the assistance of SA Business Accountant and Associates, a company that completed tax returns on behalf of PSR Solutions, without valid supporting documents,” said Mahanjana.
The matter was postponed to August 2, 2022, for disclosure of the docket.
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