14 accused in court over alleged R3.99 million VAT refund fraud

12 Oct

Written By Nicolene Steenkamp, Education Manager, Chartered Institute for Business Accountants (CIBA)

This article will count 0.25 units (15 minutes) of unverifiable CPD. Remember to log these units under your membership profile.

Fourteen accused, five entities and nine individuals, began appearing in the Siyabuswa Magistrates' Court on 6 October 2026 on allegations of VAT refund fraud. SARS and the National Prosecuting Authority (NPA) issued a joint media release on 7 October 2026.

What is alleged

False VAT returns were allegedly filed through eFiling in the name of one entity between June 2016 and June 2020.
The fraudulent refund claims allegedly cost SARS about R3.99 million.
Arrests were coordinated across Mpumalanga, Gauteng and North West, with the Hawks (Directorate for Priority Crime Investigation) and other law-enforcement agencies.
Bail proceedings were continuing when the release was issued. The release does not list the charges or the next court date.

The case is part of a wider investigation, Project Jan Vas, into a suspected syndicate of South African and foreign nationals operating in Mpumalanga, Limpopo, North West and Gauteng.

SARS Commissioner Dr Johnstone Makhubu said: "Every rand stolen through VAT fraud is a rand taken away from building a capable state." He said SARS would work with the NPA and other agencies to dismantle criminal networks.

The accused have not been convicted.

Related: responsibility for returns filed on eFiling

In Tax Court case VAT 2138 (judgment of 13 August 2026), a taxpayer argued that its eFiling profile had been compromised. The court held the taxpayer responsible for the returns filed through its profile because it could not prove the compromise, and confirmed a 150% understatement penalty. Section 250(2) of the Tax Administration Act makes a taxpayer responsible for returns filed through its profile unless it proves otherwise.