A Gqeberha businessman found guilty of defrauding the South African Revenue Services (SARS) has been handed a prison sentence of an effective five years behind bars.
Charles Welile Miya, 61, was sentenced in the Gqeberha Specialised Commercial Crimes Court on Friday.
Eastern Cape NPA spokesperson Luxolo Tyali said Miya was convicted on 16 counts of fraud against the SARS by contravening the Tax Administration Act and the Value-Added Tax Act.
Miya is the sole proprietor of Zidilex Trading CC, which traded as "Weza Projects".
“The entity, a close corporation, was registered with SARS for VAT purposes in December 2008.
“As the sole member and representative vendor, Miya, submitted false VAT returns to SARS from the period 2018 to 2020, claiming incorrect input credits and receiving undue refunds,” explained Tyali.
He said Miya changed the company's bank account details without notifying SARS and submitted revised returns without providing supporting documentation.
“The false returns were submitted electronically, making it difficult for SARS to detect the fraud.
“SARS's investigations revealed that Zidilex Trading CC received over R3.7 million in undue refunds, but through swift action, SARS managed to recover over R2.7 million, leaving an actual loss of over R1 million to SARS.”
Miya pleaded guilty to committing the crimes.
The NPA during court proceedings State Advocate Ronelle Brink highlighted the alarming increase in white-collar crime in the country, which has far-reaching negative impacts on the economy.
“She told the court that it is essential that individuals and businesses prioritise ethical conduct and transparency in their dealings with SARS.”
Regional Court Magistrate Lionel Lindoor agreed, stating that Miya, as a social grant recipient, "bit the hand that feeds him".
Despite Miya's guilty plea and status as a first-time offender, the magistrate emphasised the need for accountability and deterrent sentencing.
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