2 accused in R3.7 million tax fraud case appear in court! Two individuals, Joyce Catherine Phiri (66) and Elias Koketso Mongale (59), appeared before the Molopo Magistrate’s Court on Wednesday on charges of fraud and contravention of the Tax Administration Act.
The pair were arrested on Tuesday by the Mahikeng-based Hawks’ serious corruption investigation unit for allegedly defrauding the South African Revenue Service (SARS) over several years.
Hawks Investigate Massive Tax Fraud
According to Hawks spokesperson in North West, Warrant Officer Amogelang Malwetse, Phiri and Mongale engaged in fraudulent activities by misrepresenting their taxable income to SARS.
Joyce Catherine Phiri’s Alleged Tax Evasion
A probe into the case revealed that Phiri was registered with SARS for personal income tax but failed to declare her full gross income between 2016 and 2022.
“It is further alleged that she also omitted to submit returns for tax assessment despite constant reminders from revenue officials,” said Malwetse.
2 accused in R3.7 million tax fraud
Reports suggest that in some instances, Phiri either under-declared her income or submitted false entries in an effort to evade tax payments.
As a result, SARS suffered a total financial loss of R1.9 million due to her alleged fraudulent actions.
Elias Koketso Mongale’s Alleged Tax Fraud
Investigations also revealed that Mongale submitted fraudulent tax returns to SARS from 2015 to 2022.
“He falsely declared that he had received no taxable income during this period,” said Malwetse.
By misrepresenting his financial status, Mongale allegedly defrauded SARS of R1.8 million.
Bail and Court Proceedings
Following their court appearance on Wednesday, Phiri was granted bail of R5,000, while Mongale was released on R3,000 bail.
The court has postponed their cases to April 16, 2025, allowing for further investigations into the matter.
Authorities Applaud SARS and Hawks’ Joint Efforts
The North West acting provincial head of the Hawks, Brigadier Silas Munzhedzi, and the Director of Public Prosecutions in North West, Dr. Rachel Makhari, have welcomed the arrests.
They commended the Hawks, SARS, and the prosecution team for their collaborative efforts in fighting tax fraud and corruption.
“These arrests highlight the importance of cracking down on tax evasion and ensuring that those who defraud the government face justice,” said Brigadier Munzhedzi.
The South African government continues to strengthen tax enforcement measures to ensure that individuals and businesses comply with their tax obligations.
The Impact of Tax Fraud in South Africa
Tax fraud and evasion have a significant impact on the country’s economy, depriving the government of crucial revenue needed for public services, infrastructure, and social welfare programs.
SARS has intensified its efforts to track down tax dodgers, using data analytics, audits, and whistleblower reports to identify discrepancies in tax declarations.
In recent years, SARS has:
- Increased investigations into tax fraud cases.
- Partnered with law enforcement agencies like the Hawks to ensure tax evaders are prosecuted.
- Issued stronger penalties for individuals and businesses found guilty of tax crimes.
What Happens Next?
As the case against Phiri and Mongale continues, SARS and law enforcement officials are expected to gather more evidence to support the charges.
If found guilty of tax fraud, they could face significant fines, asset seizures, or even imprisonment.
Their next court appearance on April 16, 2025, will provide further insight into the case and determine the next steps in the legal process.
For now, SARS remains committed to ensuring tax compliance and preventing further revenue losses due to fraudulent activities.
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