Arno Pieterse defrauded the taxman of over R2.4 million. File picture: SAPS Twitter
Cape Town - A Cape Town businessman will be spending the next four years in prison after he was sentenced in the Cape Town Regional Court for defrauding the South African Revenue Services (Sars) of more than R2.4 million.
Arno Pieterse was convicted for unpaid taxes, failing to submit tax returns and failing to contribute to the Unemployment Insurance Fund (UIF) and Skills Development Levy (SDL).
According to the Western Cape spokesperson for the National Prosecuting Authority (NPA), Eric Ntabazalila, Pieterse, who is a first-time offender, received a custodial sentence given the amount owed to Sars as the court found a non-custodial sentence would not be suitable under the circumstances.
Pieterse’s company, Tresso Trading (Pty) Ltd, trading as a security audit service, was also fined R45 000. Other fines against the company were suspended for five years on the condition it was not convicted for failing to submit VAT returns and contribute towards the UIF and SDL.
“For several years, Pieterse failed to pay VAT to Sars. He would submit VAT returns, declaring what was due to Sars, but such returns were not accompanied by any payments.
“Over the period, the money he owed grew to more than R 2.248 million.
“He also deducted Pay As You Earn (PAYE) from employees but failed to pay the money over. As a result, the revenue services lost more than R39 581 in missed payments.
“He employed the same modus operandi for UIF, as he failed to pay Sars over R75 748 deducted from employees. Again, he submitted a return that was not accompanied by any payments.
“SDL payments for periods between March 2014 and June 2019 were deducted, but he failed to pay over the R47 370 owed to SARS,” Ntabazalila said.
According to Senior State Advocate, Lunda Ntshokoma, when Pieterse was advised of the outstanding taxes, there was failure to comply with the request to make payment.
He said even after the final demand letter was sent to Pieterse no payments were made to the taxman.
“It became clear during the sentencing proceedings that the accused used these taxes to refinance the business to keep it afloat as well as maintain his family lifestyle, Ntshokoma submitted.
After sentencing, Ntshokoma gave a stern warning to taxpayers not to think that statutory offences were petty offences.
“Statutory offences such as the present ones above are serious offences, and direct imprisonment is a suitable sentence for such statutory offences, and it will be imposed in suitable cases although you may be a first offender,” he warned.
robin.francke@inl.co.za
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