Pretoria, Tuesday 28 August, 2018 – A prominent Western Cape man and an East Rand bogus tax practitioner who participated in a scam defrauding SARS of R32 million, were sentenced to a combined 26 years direct imprisonment last week.

Mr Cornelius Johannes Kriek (42) from the East Rand pleaded guilty to 29 fraud charges, 21 money laundering charges, and one charge of corrupting a public official. He was sentenced to 20 years imprisonment in the Specialised Commercial Crime Court in Johannesburg on Tuesday, 21 August.

In the Cape Town Magistrate’s Court, on 23 August, Mr Thomas Bloemeris (Tommy) Fortuin (66) from Ridgeworth in Bellville, was sentenced to six years direct imprisonment on 236 charges of fraud and forgery relating to the tax affairs of close corporations belonging to members of his family. He pleaded guilty to all the charges put to him in terms of a plea bargain agreement reached with the state.

Magistrate W van der Merwe handed down an additional 12 months imprisonment to Fortuin for failure to submit two Income Tax returns. Three of the six year imprisonment sentence and the one year jail sentence for failure to submit outstanding returns were suspended conditionally for five years.

Cornelius Kriek
Kriek presented himself as a bookkeeper to unsuspecting Value Added Tax (VAT) vendors, offering swift and corrective action by submitting VAT201 returns on their behalf. Suspicion was raised by a legitimate tax practitioner who discovered that a large refund had been paid into the account of her former client within a short while after the client had switched his account to Kriek.

Kriek was also sentenced to 84 years imprisonment, suspended wholly, but conditionally for money laundering and ten years imprisonment for corrupting a public official. Five of the ten years is to be served concurrently with sentences for other charges.

It is alleged that a former SARS employee, previously employed by SARS as a VAT auditor for 35 years, assisted Kriek to commit the fraud. The cases against the two accused were recently separated after Kriek pleaded guilty. The case against the former SARS employee continues on 23 October 2018. 

SARS fraud investigators established that the VAT auditor enabled the fraud by releasing substantial VAT refunds after she ostensibly audited the respective VAT 201s submitted by Kriek on behalf of vendors. The fraudulent refunds were divided between the vendors, Kriek and the SARS employee. A total of 18 companies were involved in the VAT refund scheme, which created an actual loss of just over R32,9 million to the fiscus.

Tommy Fortuin
Two other accused in the Fortuin case were also sentenced.
Fortuin’s son, Tom-Ross Fortuin (35) and the bookkeeper who assisted the family in committing the crimes, Mr Ivor Carlo Carolissen (38), also entered into a plea bargain with the state. They were both sentenced to four years imprisonment suspended for five years, and 18 months Correctional Service, which includes house arrest and community service. Fortuin was found guilty of 79 charges of fraud and uttering and Carolissen for 167 charges of fraud and uttering.

Mr Fortuin (jnr) was ordered to pay SARS back an amount of R615 592, representing the full capital amount of money stolen from SARS through the scams perpetuated by the accused. This money had to be paid in full beforethe sentencing procedure, and has been received by SARS.

He was also sentenced to 12 months, suspended for five years, for failure to submit three Income Tax returns.

The sentences follow an investigation by SARS criminal investigators, which revealed that the convicted individuals submitted fraudulent VAT refund claims to SARS, based on fictitious transactions between the family’s four closed corporations.

Neo Tsholanku, Group Executive: Criminal Investigations welcomed the sentences, saying that SARS is committed and has the depth and tenacity to bring unscrupulous thieves who steal from the fiscus to book. He noted that the sentences also show that the courts are increasingly taking a stance against failure to submit tax returns to SARS.

Tsholanku added that the National Prosecuting Authority (NPA) has prosecuted 29 cases since April 2018, maintaining a conviction rate of 97%. More than 400 other cases dealing with tax crimes are currently on trial.

A fact sheet relating to the Fortuin case, prepared by the NPA: Western Cape is attached.

Pretoria, Wednesday, 15 August 2018 –  The South African Revenue Service (SARS)  met with the Tobacco Institute of Southern Africa (TISA) and the Fair-trade Independent Tobacco Association (FITA) on 15 August 2018 at the SARS Head Office in order to discuss and agree on collaboration among them to combat illicit trade in cigarette and all tobacco products.

FITA and TISA, which represent approximately 99% of the tobacco industry, have committed to taking action against any of their members that are found to be contravening the Tax, Customs and Excise laws of the country, including but not limited to suspension and/or expulsion.

The two associations also committed to ensuring that their members fully comply with the relevant legislation at all times. Members who may be in contravention of the laws are encouraged to take corrective action through available avenues, including making full disclosure to SARS.

All parties acknowledge their shared responsibility in combatting illicit trade in cigarette and tobacco products in the best interest of economic growth and compliance with Tax, Customs and Excise laws.

The Acting Commissioner of SARS expressed his appreciation to both parties for their commitment towards improving compliance in the industry.

Pretoria, 03 August 2018 – The South African Revenue Service (SARS) Customs division made a bust of multiple currency and drugs at OR Tambo International Airport (ORTIA). This was the latest in a string of illicit/illegal goods busts, valued at close to R15 million.

On Monday 30 July, risks were identified regarding two non-related male passengers, who were possibly in possession of excess currency travelling to Dubai. The travellers were intercepted, attempting to leave RSA and were questioned.

The travellers, in both instances, then admitted that they were in possession of currency. Upon further questioning, the two passengers could not provide explanations or evidence as to how they had acquired the currency. They were escorted off and taken to the Customs control area where their respective luggage was searched.

Upon inspection of the first passenger’s luggage, currency (USD464 650) equivalent to R6 114 794 was found concealed in paper wrapped with brown tape. The currency was confiscated, and the passenger handed over to the South African Police Service (SAPS) for further investigations.

During the inspection of the second passenger, currency (USD 234 000) equivalent to R3 079 440 was found also concealed in paper wrapped with brown tape. The currency was confiscated, and the passenger handed over to the SAPS for further investigations as well.

SARS appreciates the high level of active collaboration between ACSA, SAPS, DHA, Asset Forfeiture Unit (NPA) and the State Security Agency (SSA), which leads to such effective detections and successful prosecutions of passengers.

On 31 July 2018, a shipment from South Africa destined for the UK was profiled for examination at Couriers, when a Customs detector dog reacted positively. The shipment had been declared as ‘Car Parts General’, however, upon physical examination of the contents, a booster charger was found which felt unusually heavy.
The part was X-rayed and square shaped image impressions were observed, which led to the part being dismantled, revealing 15 blocks concealing a white powdery substance which was wrapped with black rubber and foil. The powder was analysed and it tested positive for cocaine. The goods weighed 16kg, which has an estimated value of R4 800 000. The shipment was handed over to SAPS (DPCI) for further investigation.

In another incident, a parcel declared as books, also from South Africa to Australia, was intercepted at Couriers by the Detector Dog Unit when a detector dog reacted positively. Upon inspection, four books were found containing sheets of plastic with a white powdery substance. A drug testing kit was administered and tested positive for cocaine. The goods weighed 2.5kg, which has an estimated value of R750 000. They were handed over to SAPS for further investigations.

Furthermore, on the 28 July 2018, a Brazilian female passenger expelled several “cocaine bullets” with an estimated value of R285 000.  She was intercepted whilst disembarking from Sao Paulo to Johannesburg, and intercepted when the information was received. The passenger was questioned and her luggage was searched with nothing suspicious, however risk indicators suggested that the passenger might be a drug mule. The passenger was taken to the hospital and an X-ray was conducted, which revealed foreign objects in her abdomen. The passenger was handed over to SAPS for further investigation.

In another search, a parcel with no documentation was intercepted at Couriers by the Detector Dog Unit. Upon inspection, plastic containers concealing 250 Cannabis Heads, with an estimated value of R25 000 were found. The goods were also handed over to SAPS for further investigations.

In another interception, a parcel from South Africa to Dubai was intercepted at Couriers by the Detector Dog Unit. Upon inspection, a magazine was found concealing two travel documents, valued at R1 400. The goods were handed over to SAPS for further investigations.

Another male passenger disembarking from Addis Ababa to Johannesburg was intercepted. During questioning, the passenger could not verify where he was travelling to. His passport indicated that he had been in Singapore where he obtained his visa. The passenger was taken to the immigration inspectorate office for an interview, where the visa was identified as fraudulent. He was then refused entry into South Africa, and will be returned to his country.

SARS Customs officers, together with rest of the country’s enforcement agencies, will continue to remain on high alert and vigilant at all ports of entries to stem the tide of illicit/illegal goods coming through or out of our borders.

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Pretoria, 31 July 2018 – The South African Revenue Service (SARS) today releases trade statistics for June 2018 recording a trade balance surplus of R12.00 billion. These statistics include trade data with Botswana, Lesotho, Namibia and Swaziland (BLNS). The year-to-date (01 January to 30 June 2018) trade balance deficit of R1.79 billion is a deterioration on the surplus for the comparable period in 2017 of R25.00 billion. Exports year-to-date increased by 1.5% whilst imports for the same period showed an increase of 6.6%.

Pretoria, 27 July 2018 – SARS wishes to clarify media reports that Customs officials discovered R4 and R5 rifles, 7.62mm light machine guns and ammunition on-board an aircraft at Waterkloof Airforce base last Saturday, 23 July 2018.

SARS wishes to state that the reports contain factual inaccuracies and that we were not afforded an opportunity to comment on the reports prior to release. The accurate chronology of events on this matter is as follows:

• The specific aircraft, a chartered flight, which was scheduled to depart from OR Tambo International Airport on Friday, 22 July, was cancelled. We can confirm that our Customs and Immigrations officials were informed by the South African National Defence Force (SANDF) of the flight’s schedule to be able to conduct the necessary inspections as per normal processes, including inspecting the flight for prohibited and restricted goods.
• Our Customs officials were working with colleagues in the SANDF to clear the aircraft, and we can report that neither weapons nor ammunition were found in the flight or passenger luggage during the inspection of the flight and documents presented to the Customs officials. 

Finally, SARS wishes to pledge its full commitment to cooperation with the SANDF and other relevant government agencies at national points of entry in the effort to protect the interests of the country.