The owner of Buthelezi Emergency Medical Services, Thapelo Buthelezi, has appeared in the Bloemfontein Magistrates Court with two co-accused facing charges of fraud, contravention of the Tax Administration Act and failure to submit company income tax.
Buthelezi, 43, appeared together with his wife, Monica Buthelezi, 41, his accountant, Nkosana Sekobane, 42, as well as two companies, Buthelezi EMS (PTY) LTD and B EMS Close Corporation.
They are facing a total of 95 charges.
Following the trio’s appearance on Thursday, National Prosecuting Authority (NPA) regional spokesperson Phaladi Shuping said in a statement that the state had suffered a prejudice of about R132-million.
The state alleges that the accused unlawfully, with intent to defraud the South African Revenue Service (SARS), misrepresented tax returns for the two companies between 2014 and 2019.
“They misrepresented the trading activities of the companies by claiming that the companies did not trade and submitted nil returns, whereas the companies conducted business with the Free State Department of Health and were paid approximately R1-billion by the department for rendering emergency medical services,” said Shuping.
The companies were expected to pay tax to the amount of R132 million.
“SARS suffered an actual prejudice of R132 million, which is money that the companies failed to pay to SARS by submitting nil returns whereas they claimed tax from the department,” he said.
“They were also charged for a potential prejudice of around R30 million when they fraudulently submitted returns trying to claim refunds that were not due to them.
“SARS, however, realised that the claims were fraudulent and did not pay the refunds.”
SARS has so far recovered around R100 million, through third party repayments in that they arranged with the bank that any amount of money paid to the companies should be paid to SARS instead.
The accused were each granted bail of R30 000, and the case was postponed to February 23, 2023.
The long postponement is meant to allow the defence to make representations to the Director of Public Prosecutions. – Staff Reporter
