Two businessmen from Gauteng were released on bail of R10 000 each, after they appeared in the Bloemfontein Magistrates Court facing 35 counts of tax fraud.
Khothatso Isaac Moletsane, 48, and Tumelo Peter Moletsane, 54, were charged together with their company, Mol Pro Consulting (Pty) Ltd, for allegedly defrauding the South African Revenue Services (SARS) of approximately R116.7 million by under-declaring the trading activities of their company.
According to the state, between December 2011 and May 2019, the two businessmen, who were the directors of Mol Pro Consulting, allegedly submitted nil returns to SARS on behalf of their company by misrepresenting their trading activities.
Between February 2014 and September 2016, they under-declared the value-added tax (VAT) income of the company when they allegedly submitted their company tax returns, prejudicing SARS of an amount of approximately R34.5 million.
Both the VAT and the company income tax were submitted through e-Filing.
The company had, however, done business with the municipalities and government departments and the money was deposited into the bank accounts of the company.
Between July 2017 and February 2019, they under-declared the trading activities of the company when they allegedly submitted VAT 201, and this prejudiced SARS of an amount of R7.7 million.
In 2018, they allegedly declared a nil return when they submitted the company’s income tax returns, whereas the company traded and received a total of R61.2 million and the income tax that was due to SARS was R17 million.
This was not paid because of the misrepresentation.
In February 2019, when they submitted the VAT returns for the company, they allegedly over-stated the input tax and prejudiced SARS of an amount of R33.7 million.
They allegedly under-declared the VAT income and income tax of their company and overstated the tax returns submitted to SARS with the intention of evading the payment of the VAT and the company’s income tax that was due and payable to SARS.
The total amount involved is R116.7 million, made up of R83 million of actual prejudice and R33.7 million of potential prejudice.
The case against the accused was postponed to 16 March 2023 for representations to the National Director of Public Prosecutions.