A former South African Revenue Service (SARS) employee and registered tax practitioner has been sentenced to an effective six years in prison after being found guilty of a large-scale VAT fraud scheme involving falsified tax returns and forged supporting documents.

Michael Benson was sentenced in the Bellville Regional Court following his conviction on multiple charges, including fraud, forgery, uttering, and failing to keep proper records.

According to the National Prosecuting Authority (NPA), the offences were carried out over a period of 25 months.

NPA regional spokesperson Eric Ntabazalila said the court found that Benson had “submitted eleven fraudulent VAT201 returns to SARS, claiming refunds based on wholly fabricated information.”

When asked to provide supporting documentation, Benson escalated the deception.

Ntabazalila said that he “committed further fraud by producing forged invoices, bank statements, and municipal contracts, thereby committing further offences of forgery and uttering.”

Benson’s background in revenue compliance deepened the seriousness of the misconduct. He had previously served as a VAT auditor and compliance officer at SARS between 1997 and 2000, and remained a registered tax practitioner throughout the period of the offences.

The NPA emphasised that “at all material times relevant to the charges, the accused was a tax practitioner.”

During the 25-month scheme, Benson “submitted eleven (11) false VAT210 returns to SARS, fraudulently claiming an amount of R1,7 million.”

SARS ultimately paid out R1.58 million before detecting irregularities and blocking the final claim.

Even after SARS flagged the suspicious claims and requested proof, Benson continued fabricating documents.

“He persisted in his fraudulent scheme by fabricating additional false invoices, bank statements, and municipal documentation to legitimise the misappropriated funds,” said Ntabazalila.

The NPA further said that he has made no restitution to SARS following the discovery of the offences.

The court imposed a 10-year sentence for 37 counts of fraud, four years of which were suspended, leaving Benson to serve six years behind bars.

The charges of forgery and uttering resulted in a further four-year sentence, wholly suspended for five years. He was also fined R4,000 for failing to keep proper records, with that sentence also suspended.

Benson was declared unfit to possess a firearm, and a warrant was authorised for the seizure of all firearm licences and ammunition in his possession.

The NPA has welcomed the ruling, saying it reinforces accountability among professionals entrusted with safeguarding public revenue.

“This sentence sends a decisive message that the NPA will not tolerate fraud, abuse of public trust, or the manipulation of tax systems for personal gain,” Ntabazalila said.

“Those entrusted to uphold the integrity of South Africa’s revenue system have a higher duty to act lawfully and ethically. When they betray that trust, the NPA will act firmly and without hesitation to ensure accountability.”

According to the NPA, the outcome “demonstrates the NPA’s ongoing commitment to protecting the public, safeguarding state revenue, and tackling corruption in every form, regardless of the position or status of the offender.”

IOL News

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