12-year sentence for 400 counts of fraud

CAPE Town businessman Johannes Wessels has been sentenced to 12 years’ imprisonment after being convicted on more than 400 counts of fraud.

The 49-year-old defrauded the South African Revenue Service of R14 979 992 through VAT returns that contained false information, filed false tax invoices, failed to submit income tax returns and failed to keep proper books.

As evidence mounted against Wessels, he entered into a plea and sentencing agreement.

Yesterday at the Wynberg Regional Court he was convicted on 88 counts of fraud against Sars premised on 201 VAT returns containing false information; 315 counts of fraud against Sars premised on false tax invoices to substantiate false VAT refunds claimed; six counts of c/s 75(1) (a) of the Income Tax Act for failing to submit income tax returns; and five counts of c/s 58(f) for failing to keep proper books of account.

For the first 88 counts Wessels was sentenced to 15 years’ imprisonment, of which three years are suspended. On the 315 counts he was sentenced to 12 years’ imprisonment.

He also received 24 months’ imprisonment for the five counts; and a further 18 months for the six counts. The court ordered that the sentences run concurrently.

State prosecutor Bronwen Hendry-Sidaki said Wessels was a director and representative vendor of three companies and was in effective control of two close corporations, of which his wife was the member and representative vendor.

The entities all claimed VAT refunds over a protracted period, and in total R14 979 992 was paid out to them by Sars.

Wessels had spent a significant portion of the “ill-gotten refunds” at casinos.