EMALAHLENI – In a landmark ruling on Monday, April 22, 2023, the Witbank Magistrates Court sentenced two siblings, Godfrey Mgidi (36) and Christina Mgidi (50), for their involvement in tax fraud and contravention of the provisions of section 234 of the Tax Administration Act, Act 28 of 2011.
The South African Revenue Service (SARS) brought the charges against the pair following an extensive investigation into their financial dealings.
According to the Mpumalanga Hawks spokesperson, Captain Dineo Sekgotodi said, “ During January 2015, both accused were directors of a company called Morvest Pinnacle Solutions. The accused submitted fraudulent tax returns for tax credits to the South African Revenue Service, claiming undue funds through misrepresentation whereby payments were made to the company’s Standard Bank business account belonging to Siyophumelela Trading and Projects cc, prejudicing and causing an actual loss to the Revenue Service R 968 099.33.”
“The matter was reported to the Hawks’ Nelspruit based Serious Commercial Crime Investigation for inquiry. The investigation was finalised and warrant of arrests were issued. Both accused were arrested and later released on bail. They appeared in court on several occasions until they were found guilty and sentenced.” Capt Sekgotodi explained.
“ Accused 1 : Sentenced to R10 000 fine or 12 Months imprisonment and further 6 years imprisonment which is wholly suspended for a period of 5 years on condition that the accused is not found guilty of the same offence during the period of suspension. Accused 2 : Sentenced to R50 000 fine which is wholly suspended for the period of 5 years on condition that the accused is not found guilty of the same offence during the period of suspension.” she added.
