Motaung company found guilty of evading tax | Central News South Africa

Motaung company found guilty of evading tax | Central News South Africa

By Thys Khiba

The Bloemfontein Magistrate’s Court has found Newtongate (Pty) Ltd owned by Tebang Motaung guilty for contravention of the Tax Administration Act on Monday 27 November.

Motaung’s company was awarded three contracts worth R6,4 million to supply COVID-19 equipment.

The court imposed a hefty sentence the company for tax evasion charge coming from misinterpretation of profits from COVID-19 personal protective equipment (PPE) deals.

Newtongate was ordered to repay the South African Revenue Service (SARS) R756 259.55.

It is expected to commence with instalments of R60 000 on or before 31 March 2024. Thereafter, the company should continue paying instalments of R32 000 on or before the seventh day of each month with the final instalment to be made on or before 28 February 2025.

In addition, the court sentenced the company to a fine of R1 million which is wholly suspended for five years on condition that the company is not convicted of fraud during the period of suspension.

The Free State Hawks spokesperson, WO Fikiswa Matoti, said the company was awarded a tender to supply personal protective equipment (PPE) for Covid 19 by the Free State Department of Treasury.

“It happened that Tebang Motaung, the director of Newtongate (Pty) Ltd, under declared his company’s tax status and submitted a nil return through eFilling. The South African Revenue Service (SARS) detected the irregularity and began with internal investigation which uncovered that Newtongate (Pty) Ltd received business income and incurred expenses but submitted a nil return.

“In the process, SARS was prejudiced and suffered a total loss of R757 068.94,” said Matoti.

A criminal case was then opened and referred to the Hawks’ Serious Commercial Crime Investigation for further probe which resulted in the conviction of Newtongate (Pty) Ltd.

SARS temporarily Close Its Tax Branches for Physical Visits


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