Dec 7, 2022

Mawazo Writing Africa

Writing about the main

Two company directors in court for allegedly defrauding Sars of millions

Two company directors accused of defrauding the SA Revenue Service (Sars) briefly appeared before the Pretoria Specialized Economic Crimes Court on Thursday.

Suzan Pheladi Raphela, 32, Director of PSR Solutions, and Sibusiso Sanele Mhlongo , 29, director of SA Business Accountant and Associates, face charges of failing to register VAT, four counts of fraud involving tax evasion of more than R10 million and six counts of failure to file tax returns.

The pair and their companies are said to have defrauded Sars after PSR Solutions received a R45 million personal protective equipment (PPE) tender from the SA Police Service (SAPS) on April 3, 2020.

“It is alleged that at the time PSR Solutions received the tender from SAPS, the company was not registered as a VAT seller,” the spokespersons said in the National Law Enforcement Agency, Lumka Mahanjana.

“However, when the company finally registered as a seller in June 2020, it failed to disclose the R45m payment received from SAPS and therefore has not returned its tax value.”< /p>

PSR declared the VAT amount on the R45 million after being informed by Sars of an audit they had carried out.

“They have, with the support of SA Business Accountant and Associates in fraudulently demanded R4.4 million from a company that completed tax returns on behalf of PSR Solutions without valid supporting documents.”

The case has been adjourned to August 2 for disclosure of the file.


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