Businessman gets 13 years for fraud, failing to submit tax returns

The George Regional Court yesterday came down heavily on a well-known businessman and his company after his conviction of fraud and the failure to submit income tax and VAT returns.

“Thanduxolo Alton Mavata, 54, a first-time offender and owner of Mavata Road Construction, was sentenced to an effective 13 years’ imprisonment,” National Prosecuting Authority (NPA) spokesperson Eric Ntabazalila said.

In addition to the custodial sentence, the court also fined Mavata R150,000, or 36 months’ imprisonment.

It wholly suspended the 36-month sentence or fine for five years on condition that Mavata was not convicted of fraud again during the period of suspension.

Mavata’s company was sentenced to 30 years’ imprisonment, or R280,000, wholly suspended for five years, on condition the company was not charged with fraud during the period of suspension.

Senior state advocate Lunga Ntshokoma, of the NPA’s specialised tax unit, informed the court that Mavata and his company traded as Security Zone, but had failed to submit income tax and VAT returns while pretending the company was dormant.

“The main purpose was to get a tax clearance certificate from the SA Revenue Service (Sars) without declaring any income or VAT for the company,” Ntabazalila said.

“In so doing, the tax clearance certificate was issued to the accused.

“At all material times they were trading, invoicing and charging VAT without declaring it to Sars.”

It became clear during the hearing that the accused had instead used these taxes to refinance the business, keep it afloat and maintain his family’s lifestyle.

The accused further failed to submit IT 14 and VAT 201 returns when they were due to Sars.

These returns remain outstanding.

Ntabazalila said these fraudulent actions had led to Sars losing more than R900,000.

Ntshokoma further successfully argued that Mavata could not claim to be a primary caregiver of his three-year-old child as the child was living with a grandmother.

Ntshokoma said Mavata’s assertions that he was on chronic medication also did not mean he was not a candidate for a jail sentence. The court agreed and sentenced him to direct imprisonment.

Western Cape director of public prosecutions Nicolette

Bell commended all those whose work had led to the long-term imprisonment of the first-time offender.

“We are very proud that this co-operation [between Sars and the NPA] produces good sentences which send a clear message to other would-be tax offenders and fraudsters that we take white-collar crime and corruption as seriously as we take violent crimes,” Bell said.