Sars VAT fraudster sentenced

Nine years for syndicate man

AMAN who was on the run after he was fingered as part of a syndicate that defrauded the SA Revenue Services (Sars) of R260 000, has been given a nine-year jail sentence. Ryan Peterson, 30, had been on the run when he was arrested. Members of the syndicate he was a part of had already been prosecuted and sentenced.

Peterson was prosecuted in a separate court case. He was convicted on 21 counts of money laundering and 18 counts of fraud relating to a VAT scheme. He was sentenced in the Bellville Commercial Crimes Court.

The syndicate’s modus operandi was to establish business entities with the sole purpose of registering for VAT at Sars, submitting false VAT claims and having refunds paid out into bank accounts opened solely for this purpose. The money received would be withdrawn at the ATMs.

The court heard that in some cases where Sars required corroboration or support for refunds claimed, false invoices would be submitted.

The syndicate was caught out when some of the false invoices submitted over the counter at the Bellville branch of Sars offices were spotted. A further probe by Sars proved that the business entities did not exist.

The court heard that the addresses provided for the businesses were false and that there was no business activity taking place as represented to Sars.

After this operation was discovered by Sars the syndicate changed its modus operandi from fraudulent VAT refunds to fraudulent income tax refunds.

The income tax scam consisted of the creation of fictitious taxpayers on the Sars system in order to make refunds possible into bank accounts opened for the new operation.

Advocate Margot Jacobs said Peterson had been part of a syndicate. Jacobs told the court the syndicate had an “inside man”, a Sars employee whose role was to manipulate the Sars systems by submitting fraudulent VAT claims.

“This case just once again shows that you can run from the law, but you can’t hide forever and we will track you down and you will not escape prosecution. The effective nine years direct imprisonment for a first offender sends out the message that tax-related fraud and money laundering are serious offences and will not be tolerated,” said Jacobs.

The National Prosecuting Authority’s regional spokesperson, Eric Ntabazalila, said they welcomed the sentence.

YOU CAN’T HIDE FOREVER AND WE WILL TRACK YOU DOWN AND YOU WILL NOT ESCAPE PROSECUTION