Two company directors in court for allegedly defrauding Sars of millions

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Two company directors accused of defrauding the SA Revenue Service appeared briefly before the Pretoria specialised commercial crimes court on Thursday.

Suzan Pheladi Raphela and Sibusiso Sanele Mhlongo in the Pretoria specialised commercial crimes court on Thursday.Two company directors accused of defrauding the SA Revenue Service appeared briefly in the Pretoria specialised commercial crimes court on Thursday.

Suzan Pheladi Raphela, 32, director of PSR Solutions, and Sibusiso Sanele Mhlongo, 29, director of SA Business Accountant and Associates, face charges of non-registration of VAT, four counts of fraud related to more than R10m in tax evasion and six counts of non-submission of tax returns. The two, and their companies, allegedly defrauded Sars after PSR Solutions received a personal protective equipment tender amounting to R45m from the SA Police Service on April 3 2020.

“It is alleged that at the time PSR Solutions received the tender from SAPS the company was not registered as a VAT vendor,” National Prosecuting Authority spokesperson Lumka Mahanjana said. “However, when the company eventually registered as a vendor in June 2020, it failed to disclose the R45m payment received from SAPS and therefore did not return its tax value.”“They fraudulently claimed R4.4m with the assistance of SA Business Accountant and Associates, a company that completed tax returns on behalf of PSR Solutions without valid supporting documents.”

 

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