The Guard

The Truth On Board

Businessman, company sentenced for tax fraud

By Staff Reporter

BETHLEHEM – The Bethlehem Magistrate Collen Nenkosie has fined Ntsane Ceberion Mopeli and his company M2T Systems CC, R7.3 million or 18 years in jail for tax fraud.

The jail term was suspended for five years on condition that the company is not found guilty of similar offence during that time.

Mopeli (67) was further put under correctional supervision for three years.

He was convicted of 23 counts of fraud and four counts of the Contravention of the Tax Administration Act, that were committed between 2014 and 2017.

According to evidence in court, Mopeli submitted three false company income tax returns and 20 false VAT returns between 2014 and 2017.

He misrepresented the trade activities of the company, causing a total prejudice to the South African Revenue Services (SARS) of over R27 million. R18.7 million was actual prejudice and the R8.4 million was a potential prejudice.

Mopeli failed to declare the income received by M2T System CC to SARS and in some instances, he claimed false VAT expenses and PAYE credits that were not due to his company.

M2T System CC was in the construction industry and their main source of income was Maluti-A-Phofung Local Municipality.

The statutory charges relate to failure to provide supporting documentations to SARS as well as failure to register for VAT purposes.

The Asset Forfeiture Unit (AFU) has already seized assets valued at R11 million and the court ordered that such proceeds must be paid to SARS.