Mabidi Livingstone Mashele, the director of Hoxana Trading, and his accountant Sizakele Makgoba have been sentenced after they pleaded guilty to tax evasion charges in 2021.
The duo appeared at the Pretoria Specialised Commercial Crimes Court on Monday.
According to National Prosecuting Authority spokesperson Lumka Mahanjana, the court has ordered them to pay a fine of R1-million before December 30. Mahanjana said the duo was also sentenced to six years imprisonment.
The sentence, however, will be suspended for five years, provided they do not commit a crime of this nature again within the said period.
“The Pretoria Specialised Commercial Crimes Court sentenced Mabidi Livingstone Mashele, 40, his company Hoxana Trading, and the company’s accountant Sizakele Makgoba, 42, to a fine of R1-million collectively and a further six years imprisonment each, suspended for five years on condition that they are not convicted of tax evasion. The magistrate ordered them to pay their fines before 30 December 2022,” said Mahanjana.
It is alleged that the duo, under Mashele’s company, defrauded the SA Revenue Service (SARS) of over R400 000 between 2016 and 2017. Mahanjana said the company rendered taxable services from which they benefitted R5-million and never submitted tax returns.
“During the VAT [value-added tax] period of March 2016, September 2017, and November 2017, the company rendered taxable services to different local municipalities and received payments of over R 5 million.
“However, from the payments received, the company submitted zero returns to the South African Revenue Service. They were summoned to appear in court on 8 June 2021, and pleaded guilty, after SARS instituted an investigation against the company.
“In aggravation advocate Tumelo Mokoena told the court that the offences were committed against the fiscus, which affects the citizens of South Africa, especially the poor. Moreover, often it is impossible to detect these types of offences until it is too late when SARS has suffered financial loss.”
NPA has welcomed the sentence.
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