DIRECTORS OF 3 COMPANIES HELD FOR OVER E11M TAX EVASION

MBABANE – Directors of three different companies have been arrested for tax evasion, amounting to over E11 million.

The directors are from Yati Media (Pty) Ltd/a Yati Marketing Consultancy, Three Kay Kay Investments (Pty) Ltd and Copy-Cat Eswatini (Pty) Ltd. Four directors in Mfundo Mavimbela, Mathokoza Mavimbela, Silindile Mavimbela and Dumsile Fakudze were charged for the offence under Yati Media (Pty) Ltd/a Yati Marketing Consultancy. However, only Mfundo appeared at the Mbabane Magistrates Court yesterday.  According to the charge sheet, the company (Tati Media (Pty) Ltd) is accused of deducting employees’ tax and unlawfully using or applying the amounts so deducted or withheld by it for purposes other than the payment of such amounts to the commissioner general of Eswatini Revenue Service (ERS). The alleged act of the directors is in contravention of the Income Tax Order, 1975.

It is alleged that the directors used the modus operandi between 2019 and 2023, resulting in the ERS losing a sum of over E8 million. The directors of the company are also accused of failing to pay Value Added Tax (VAT) to the ERS between 2018 and 2019. Mfundo has been remanded out of custody until October 15, 2024 for trial. On the other hand, eight directors were charged for evading tax from Three Kay Kay Investments (Pty) Ltd. They are Shuja Atif, Zia-Udin Shafqat, Ejaz Mohammed, Ali Abas, Birdal Hifzal, Ejaz Shamsa, Raza Muhammad and Muhhamad Shahzad. However, only Birdal Hifzal and Raza Muhammad appeared at the Mbabane Magistrates Court.The Crown submitted that the other directors were reportedly in South Africa, where they operated some of the business branches.

Allegations

Muzi Nxumalo, who is representing the Crown, said the directors were still wanted to answer on the allegations levelled against them. However, Nxumalo said the Crown had decided to try the other directors separately once located. The directors of the company are accused of having failed to file or neglected to file or submit pay-as-you-earn (PAYE) returns as required by ERS from 2013 until 2022. The directors are also alleged to have attempted to evade payment or collection of tax amounting to E425 676.11 on three different occasions.
They are facing 11 counts in total. They both pleaded guilty to the charges. Mitigating on the sentences through their Lawyer Sinakekelwe Mhlanga, the duo pleaded for the court’s leniency, stating that they pleaded guilty to the charges and thus not waste the court’s time. They implored the court to consider the fact that they took the charges seriously and hired a lawyer to represent them.

“May the court consider that my clients have paid all the outstanding debts with ERS,” submitted Mhlanga. The debt settlement was also confirmed by the Crown. “It means your clients want to be arrested before they can pay the tax,” said Magistrate Innocent Motsa who presided over the matter. The directors were sentenced to nine years imprisonment with an option to pay a fine of E10 000 in each of the first nine counts. They were sentenced to two years imprisonment with an option to pay a fine of E10 000 in each of the two counts.
However, the counts were made to run concurrently.  

This means that they parted with E10 000 to gain their liberation. Magistrate Motsa highlighted that the duo escaped over E100 000 as the penalty clause for each count was E10 000.
Meanwhile, Copy-Cat Eswatini (Pty) Ltd Director Cassim Suleman is alleged to have claimed that the company had not received a gross amount yet it received an amount of E2 483 946.08. It is further alleged that the director under declared the company’s gross amount of 497 360.1 6. Saleman has since been remanded out of custody until November 28, 2024 for continuation.

Post your comment

Your name:

Your e-mail address:

Add your comments:

Please enter the code you see in the image:

Image:

Code: