VAT fraudsters get lengthy jail terms

A BOGUS East Rand tax practitioner along with a prominent Cape Town businessman are serving jail time after they were found guilty of participating in a scam defrauding the SA Revenue Service (Sars) of R32 million.

Cornelius Johannes Kriek, 42, from the East Rand pleaded guilty to 29 fraud charges, 21 money laundering charges, at the Specialised Commercial Crime Court in Johannesburg and was sentenced to 20 years imprisonment.

This while Thomas Fortuin, 66, from Bellville was sentenced to six years direct imprisonment on 236 charges of fraud and forgery relating to the tax affairs of close corporations belonging to members of his family.

Sars said Kriek had presented himself as a bookkeeper to unsuspecting VAT vendors, offering swift and corrective action by submitting VAT 201 returns on their behalf.

Suspicions were raised by a legitimate tax practitioner who discovered that a large refund had been paid into the account of her former client within a short while after the client had switched his account to Kriek.

Kriek was also sentenced to 84 years imprisonment, wholly suspended and a further 10 years imprisonment for corrupting a public official.

Five of the 10 years is to be served concurrently with sentences for other charges.

Thomas, a well-known businessman, his son TomRoss Fortuin and their bookkeeper Ivor Carlo Carolissen had entered into a plea bargain with the State.

Thomas was sentenced to six years direct imprisonment at the Cape Town Regional Court on 236 charges of fraud and forgery relating to the tax

Ordered to pay Sars back the full amount of money stolen through the scams

affairs of close corporations belonging to members of his family.

“Thomas was found guilty of 79 charges of fraud and uttering and Carolissen for 167 charges of fraud and uttering.

“Tom-Ross was ordered to pay Sars back an amount of R615 592, representing the full capital amount of money stolen from Sars through the scams perpetuated by the accused.

“This money had to be paid in full before the sentencing procedure and has been received by Sars.

“He was also sentenced to 12 months, suspended for five years, for failure to submit three income tax returns,” Sars said.

Sars criminal investigations group executive Neo Tsholanku said: “Sars is committed and has the depth and tenacity to bring unscrupulous thieves who steal from the fiscus to book.

“The sentences also show that the courts are increasingly taking a stance against failure to submit tax returns to Sars.

“The National Prosecuting Authority has prosecuted 29 cases since April 2018, maintaining a conviction rate of 97%.

“More than 400 other cases dealing with tax crimes are currently on trial.”