Durban businessman jailed for tax fraud
A Durban businessman has begun serving a 10-year prison sentence after pleading guilty to tax fraud amounting to R2,9 million.
Bongani Magubane was sentenced in the Durban Magistrates Court on Friday.
He faced five charges of Corporate Income Tax fraud and one count of Pay As You Earn fraud.
Spokesperson for the NPA in KZN, Natasha Kara says for the tax period between 2012 to 2016, Magubane filed a nil return to SARS.
Kara says he claimed that he did not receive any income, but that was not true.
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She says Pay As You Earn tax credits were also claimed for the benefit of his company in 2019 causing the Income Tax debt of his company to be extinguished.
"Magubane was sentenced to an effective 10-year imprisonment. The company was sentenced to a fine of R200 000, which was wholly suspended for five years on condition that Magubane is not convicted of fraud, theft, forgery or uttering during the suspension period.
"This case indicates the effective working relationship between the NPA and the SARS. Both aim to ensure that all those who evade tax are identified and successfully prosecuted. The NPA, SARS and SAPS officials who worked on the matter are at this moment congratulated. Stakeholder engagement and collaboration are key to successfully prosecuting tax cases."
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