Company director fined R800k for tax fraud
SANDI KWON HOO SANDI.KWONHOO@ACM.CO.ZA
THE DIRECTOR of Batsha ba Tirong Financial Management (Pty) Ltd, Zo Marius Augustian Bocks, 54, was sentenced to an R800,000 fine for contravening the tax regulations, where the state suffered a potential loss of R21.9 million.
Bocks pleaded guilty to the charges in the Kimberley Specialised Commercial Crimes Court on Friday.
According to an investigation conducted by the Criminal Investigations Unit of the South African Revenue Service (Sars) in Kimberley, Batsha Ba Tirong Financial Management Pty (Ltd), trading as Batsha Ba Tirong Security Services, submitted a fraudulent 2018 Company Income Tax return, claiming false Pay As You Earn (PAYE) amounting to R13 million on a false IRP5 Certificate from Sars.
The company submitted a fraudulent Value Added Tax (VAT) return for the November 2018 tax period, claiming false expenses amounting to R8.8 million from Sars.
Magistrate Vernon Smith noted that Bocks was a first offender and that he provided jobs for 184 workers.
“The accused is facing a very serious charge of fraud. A forensic investigator from the South African Revenue Service, Gerhardus Janse van Vuuren, testified on how this offence negatively impacted on the state.”
Smith emphasised the need for citizens to honour their tax obligations.
“These funds are used to serve the community, to fund government functions, schools, correctional services, etc. It appears as if the accused did not want to do away with his lifestyle and houses, and that he was not totally honest with the court regarding his tax returns. As a possible solution, he was willing to borrow money from his construction company to pay his dues to Sars.”
Smith stated that he would be lenient in not handing down a sentence of direct imprisonment, which was typically imposed for this sort of offence.
He ordered the company to pay a fine of R200,000 and Bocks to pay R600,000 or alternatively serve a five-year sentence of direct imprisonment.
“An amount of R200,000 must be paid on the seventh of each month.”