The company director Thozamile Sheperd Mangweni (62) and his company Katlang General Trading CC were arrested by the Gqeberha Serious Commercial Crime Investigation team of the Hawks on 8 March 2023 for allegations of fraud and contravention of the Tax Administration Act.
It is alleged that Mangweni as the director of Katlang General Trading CC on behalf of his company submitted false Value Added Tax (VAT) 201 returns to South African Revenue Services (SARS) for the period between September 2020 until February 2022.
It is reported that he did not upload any supporting documents when the returns were electronically submitted. It is further alleged that between January 2021 and July 2021, the accused was not audited and the VAT 201 returns claim to the value of more R280 000-00 was paid to the accused.
It is further alleged that for the submission for the period between November 2021 and February 2022 SARS decided to audit the accused for VAT 201 returns claim.
The accused was requested to submit supporting documents concerning the return claim. The accused is reported to have uploaded false supporting documents for the said period which resulted in a potential prejudice of more than R2 million.
The latter VAT 201 returns claim was not refunded to the accused due to the false documents supplied to SARS. This implies that SARS was saved from a potential prejudice of more than R2 million.
The matter was reported to the Hawks for extensive probing hence the arrest on 08 March 2023. Mangweni appeared in Gqeberha Magistrate’s court on the same day and was released on R2000-00 bail.
The matter is remanded to 15 March for copies of the dockets.