The South African Revenue Service (SARS) has welcomed the 25-year sentence meted out in a R62 million VAT fraud case.
The man, André Claude Dickoumba-De-Diguela, and company Assistance Médicale International pleaded guilty to 127 counts of fraud and 66 counts of money laundering related to fraudulent VAT refund claims that occurred over 12 years.
SARS Commissioner Dr Johnstone Makhubu noted that the sentencing comes as a result of the revenue collector’s investigative and enforcement capabilities.
“Fraudulent VAT [Valued Added Tax] refund claims are not simple administrative errors. They are carefully calibrated acts of criminality that defraud the country’s revenue base, harm honest taxpayers, and deprive the government of the resources necessary to provide essential public services.
“Every Rand lost to fraud is a rand that could have been used to support economic development, infrastructure, healthcare, education, and other vital services.
“Complex tax and financial-crime cases require strong investigative work, careful prosecution, and sustained inter-agency cooperation. Today’s legal success in this matter shows what we can achieve in the fight against the depravity and crime engulfing our country and state institutions,” he said in a statement on Friday.
The Commissioner added that SARS is working to foster a “culture of voluntary compliance” for all taxpayers.
“Filing Season demonstrates this commitment in practical terms: taxpayers have better digital services, more prefilled information, and easier ways to meet their obligations. But simplicity for honest taxpayers must never be mistaken for weakness in the face of deliberate fraud.
“Those who fabricate VAT refunds, conceal the proceeds, and launder money threaten our country’s financial stability. SARS will follow the evidence and work with relevant authorities to ensure that deliberate non-compliance carries real consequences,” Makhubu warned. – SAnews.gov.za
