Staff Reporter
Former Free State premier Ace Magashule’s son appeared in the Bloemfontein Magistrates Court on Friday facing tax fraud charges relating to personal protective equipment (PPE) contracts worth R7.4 million that his business was awarded.
The state is alleging that the 39-year-old Tshepiso Gift Magashule unlawfully, with an intent to defraud the South African Revenue Services (SARS), misrepresented his company Motheko Projects (Pty) Ltd’s trade activities in submission of VAT returns.
He is being charged together with his company and accountant Makhosi Johannes Tshabalala, aged 32.
“It is alleged that between April 2020 and February 2021, Tshabalala submitted, on behalf of Motheko Projects, VAT returns reflecting zero income whereas the company was awarded five PPE contracts worth R7.4 million,” the National Prosecuting Authority said in a statement issued by its Free State regional spokesperson Phaladi Shuping.
“The company was supposed to pay VAT amounting to R437 000 based on the income generated in that period,” it added.
Magashule and Tshabalala are facing five counts of fraud or alternatively Contravention of Tax Administration Act.
After appearing in court, they were released on warning with their case postponed to April 22 for representations.
Another businessman, Katleho Ignatius Motaung, 28, also appeared separately before the Bloemfontein Magistrates Court on Friday facing similar charges.
It is alleged that Motaung submitted tax returns on behalf of his company Le Di Phaka Phaka between April and December 2020 in which he misrepresented trading activities of the company.
“He unlawfully, with the intent to evade payment of tax, submitted zero returns as if the company did not trade during that period, whereas it traded and received an income of R1.9 million after receiving three PPE contracts,” the NPA said.
“Le Di Phaka Phaka was supposed to pay tax of almost R254 000.”
Motaung was also released on warning and he is expected back in court on April 22 for representations.