Ex-SARS Auditor Jailed for VAT Fraud — A Wake-Up Call for Tax Practitioners

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A former SARS employee and registered tax practitioner has been sentenced to six years in prison for orchestrating a VAT fraud scheme that saw him pocket over R1.5 million through false refund claims.

Michael Benson, once employed as a VAT auditor at SARS, was convicted of over 80 offences — including fraud, forgery, uttering, and failing to keep proper records. His crimes spanned more than two years and involved the use of fake invoices, forged municipal contracts, and manipulated bank statements to support false VAT claims.

When Mistakes Become Crimes

There’s a big difference between human error and intentional wrongdoing, and this case is a clear example of the latter.

• Human error happens when someone unintentionally makes a mistake, often due to misunderstanding, oversight, or stress. These are fixable and forgivable, especially when reported in good faith.

• Intentional wrongdoing, like Benson’s, is when someone knowingly and deliberately breaks the rules, often for personal gain. In this case, Benson didn’t stop when questioned. He went further, creating fake documents to cover his tracks. That’s not a mistake. That’s a plan.

Ethics Must Come First

Tax practitioners are trusted with financial systems that affect millions of lives. That trust comes with a duty to act ethically and transparently, even when no one is watching. Benson’s background as a former SARS auditor and registered practitioner made the breach even more serious. He knew the system and chose to abuse it.

The court noted that he only stopped because SARS caught him, not because he admitted wrongdoing. He also failed to repay the funds and continued the deception even after being confronted.

Leading by Example

This case reminds us that:

• Mistakes happen, cover-ups shouldn’t. Own up early and correct errors before they grow into ethical violations.

• Intent matters. The system can forgive a wrong number, but not a wrong motive.

• Guard your reputation. Every action you take reflects on the profession as a whole.

The National Prosecuting Authority (NPA) welcomed the sentence, saying it sends a clear message: fraud and abuse of public trust will not be tolerated.

Source article: Cape Times