A Gqeberha businessman has been released on warning after being arrested for allegedly defrauding the SA Revenue Service (Sars) of more than R2.7m.
It is further alleged that, through his two companies, he attempted to defraud the taxman of an additional R4.6m by submitting false VAT refund claims.
Mpumelelo Equest Mdanda, 46, was arrested on Monday by the Gqeberha-based Serious Commercial Crime Investigation unit of the Hawks, working jointly with the National Prosecuting Authority and its specialised tax unit.
Mdanda and the companies, MT and AO Trading Pty Ltd, face charges of contravention of Section 235 of the Tax Administration Act.
Provincial Hawks spokesperson Captain Yolisa Mgolodela said it was alleged that between 2019 and 2021 Mdanda, as the director of MT and AO Trading, knowingly and intentionally submitted false VAT calculations, resulting in undue VAT refunds.
“During auditing, Sars picked up the red flags and lodged a complaint with the Hawks.
“Investigations revealed that Sars was actually prejudiced out of more than R2.7m and put to a potential prejudice of more than R4.6m,” Mgolodela said.
Mdanda appeared in the Gqeberha magistrate’s court on Monday, where he was released on warning.
The case was postponed to August 1 for him to obtain legal representation.
HeraldLIVE
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