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'VAT fraudsters' splurged ill-gotten millions on houses‚ cars and holidays‚ says taxman

Two Cape Town men who appeared in court on Friday for alleged VAT fraud totalling R115-million spent lavishly on cars and properties around the Mother City‚ according to the South African Revenue Service (SARS).

SARS investigating officer Francois Scholtz said in an affidavit handed in at Cape Town Magistrate’s Court that Nazmien Warner‚ 53‚ and Luis Filipe Fernandes‚ 48‚ used three businesses to claim illegal VAT refunds between January 2002 and August 2015.

   

The companies — ICE International Commodities and Exports‚ B and F Trading and Exports and Iconmarket — were exporters‚ and Scholtz’s affidavit said they claimed to have made sales worth more than R800-million to a company in Namibia but never received payment.

“I scrutinised the SAD 500 documents [customs declaration forms] which the three entities uploaded as supporting documents ... and found that the same documents were used over and over again‚” said Scholtz.

He said the same document was used as a template and its contents adjusted to reflect transactions in different months‚ something he flagged as a clear case of fraud.

Scholtz said the two used the VAT refunds to finance expensive overseas trips and luxury cars‚ and both “hold a large property portfolio”.

The affidavit shows Fernandez‚ of Melkbosstrand‚ bought four properties worth a combined R5.6-million between 2006 and this year.

He had since sold two of the most expensive — both in Atlantic Beach Golf Estate — for a total of R8.5-million.

Another Atlantic Beach property in Sunset Clam Lane was bought in the name of his wife‚ Jonelle‚ in 2013 and sold this year for R1.6-million.

Fernandez also owns five vehicles bought between 2011 and last year — two Minis‚ two Land Rover Freelanders and a Jeep Cherokee.

Scholtz said Warner‚ of Bellville‚ had seven properties worth more than R5-million‚ which were bought between 1989 and 2015. The most expensive‚ in Strand‚ was bought in 2010 for R2.1-million.

He had two vehicles registered in his name‚ an Audi A5 bought last year and a Toyota bought in 1987. However‚ other properties and vehicles are linked to him through his wife‚ Shaheemah.

The bank account of Shaheemah’s company‚ Baqarah Investments‚ was also used in one of the transactions involving the Sars payments‚ said Scholtz.

She bought two properties between 2005 and 2013 for more than R1.1-million and owned three vehicles — a Chery Tiggo‚ a Land Rover Evoque and a Mercedes Benz SLK 350.

A company named Warner and Associates also had a Land Rover Evoque on its books while Baqarah Investments owned two properties worth a combined R1.9-million and a VW Polo.

Warner and Fernandes face charges of fraud‚ theft‚ money laundering‚ forgery and uttering. They were released on bail of R500 000 and R50 000 respectively‚ and are expected back in court on March 2. They were ordered to surrender their passports.

 

 

 

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