THE Johannesburg Specialised Commercial Crimes Court in Palm Ridge sentenced Harisu Bukari (47) to 12 years in prison on Monday, 27 March, for a R2,7 million fraud.
The man made false claims to the South African Revenue Service (Sars) to obtain refunds. The false claims amounted to over R2,7 million for the tax period January 2012 to September 2015.
Harisu and his company, Mark Two Electronics, were charged with 19 counts of fraud, two counts of and one count of document forgery for submitting falsified value added tax (VAT) 201 tax return. Fictitious tax invoices to the South African Revenue Service (SARS) to obtain unlawful VAT refunds.
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National Prosecuting Authority spokeswoman Phindi Mjonondwane said that under certain conditions, a company would be required to register with SARS for VAT.
"Once registered, the entity is then referred to as a VAT Vendor and must levy VAT on the supply of goods and services. This is referred to as Output Tax," she said.
The VAT Vendor also has the right to claim VAT on various expenses, whether capital or operational expenses, provided they serve to promote the business, as permitted by VAT Act.
The NPA applauded Advocate Mzuhleli Mcosini and the investigators from SARS Criminal Investigations unit for ensuring that the criminal was jailed.
Mjonondwane said that the NPA will ensure that citizens do not criminally evade tax obligations.
