Company director arrested in alleged R34.7 million VAT fraud scheme
A Gqeberha company director has been arrested in connection with an alleged multi-million-rand VAT fraud scheme that the Hawks say was designed to siphon more than R34 million from the national fiscus.
The Directorate for Priority Crime Investigation’s Serious Commercial Crime Investigation unit in Gqeberha, Eastern Cape, arrested 51-year-old Phakamani Joseph Takuta, along with his company, Ilingelethu Trading and Projects (Pty) Ltd, on November 19.
He appeared in the Gqeberha Specialised Commercial Crimes Court the same day and was released on warning.
According to Hawks spokesperson Warrant Officer Ndiphiwe Mhlakuvana, the arrest stems from “an alleged large-scale Value Added Tax fraud scheme amounting to R34.7 million.”
Investigators say the alleged fraud took place between 2022 and 2023, when Takuta reportedly submitted falsified VAT 201 returns to the South African Revenue Service (SARS).
“Thereafter, the revenue picked up discrepancies from the returns submitted and referred the matter to the Hawks for probing,” Mhlakuvana said.
As the investigation unfolded, authorities uncovered what they describe as a deliberate attempt to manipulate the tax system.
“Preliminary findings further indicated that the input tax claimed was neither truthful nor supported by legitimate business transactions, as the amounts declared were ostensibly not based on valid invoices and no actual trade had occurred during the relevant VAT periods,” Mhlakuvana said.
The Hawks say the alleged scheme sought to obtain an “undue VAT refund of over R34.7 million”, placing SARS at risk of a significant financial loss.
They describe the conduct as “a deliberate and calculated attempt to defraud the national fiscus.”
The case has been postponed to January 16, 2026 for Takuta to obtain legal representation.
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