Businessman gets 13 years’ jail time for fraud and failing to submit tax returns

The George regional court in the Western Cape on Wednesday handed down heavy sentences to a well-known businessman and his company after their conviction for fraud and failure to submit income tax and VAT returns.

“Thanduxolo Alton Mavata, 54, a first-time offender and owner of Mavata Road Construction, was sentenced to an effective 13 years’ imprisonment,” said National Prosecuting Authority (NPA) spokesperson Eric Ntabazalila. 

In addition to this custodial sentence, the court also fined Mavata R150,000 or 36 months’ imprisonment. It wholly suspended the 36-month sentence or fine for five years, on condition that Mavata is not convicted of fraud during the period of suspension.

Mavata’s company was sentenced to 30 years’ imprisonment or R280,000, wholly suspended for five years on condition that the company is not charged with fraud during the period of suspension.

Senior state advocate Lunga Ntshokoma of the NPA’s specialised tax unit informed the court that Mavata and his company traded as Security Zone, but failed to submit income tax and VAT returns, pretending the company was dormant.

“The main purpose was to get a tax clearance certificate from the SA Revenue Service (Sars) without declaring any income or VAT for the company. In so doing the tax clearance certificate was issued to the accused.

“At all material times, they were trading, invoicing and charging VAT without declaring it to Sars,” Ntabazalia said.

It became clear during the hearing that the accused used these taxes to refinance the business, keep it afloat as well as maintain the family lifestyle.

The accused further failed to submit IT 14 and Vat 201 returns when they were due for submission to Sars. These returns remain outstanding. Ntabazalila said these fraudulent actions led to Sars losing more than R900,000.

Ntshokoma further successfully argued that Mavata cannot claim to be a primary caregiver of his three-year-old child, as the child stayed with the grandmother.

Ntshokoma said Mavata’s assertions that he was on chronic medication did not mean that he was not a candidate for a jail sentence.

The court agreed and sentenced him to direct imprisonment.

Western Cape director of public prosecutions Nicolette Bell commended all those whose work led to the long-term imprisonment of the first-time offender. 

Bell said the Sars-NPA team ensures all evidence needed is obtained and presented to the court to ensure a just verdict is reached and a proper sentence is meted out. 

“We are very proud that this co-operation produces good sentences which send a clear message to other would-be tax offenders and fraudsters that we take white-collar crime and corruption as serious as we take violent crimes,” Bell said.

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