The millions stolen by Johannes van Staden could have paid the grants of at least 166 667 people for a month, the court was told.
|||Cape Town - Convicted fraudster Johannes van Staden took at least a quarter of a billion rand in taxpayers money to fund two game farms worth R11 million, buy luxury cars and plush flats for his family members - all the while dodging detection from state tax services.
Based on the tax rates of 2009, he would have robbed at least 7 478 taxpayers of their dues. This was the testimony of Sars criminal investigator and chartered accountant Rory Cohen, who testified in aggravation of sentencing at the end of a marathon trial in the Western Cape High Court on Monday.
Van Staden was found guilty of defrauding Sars of at least R250 million in four years in what is said to be one of the biggest cases of VAT fraud experienced by the South African Revenue Service (Sars).
Van Staden was convicted of 35 of the 184 charges brought against him which included money laundering, fraud, racketeering and reckless lending in the company, Indo-Atlantic Group of Companies, he used as a front between 2005 and 2008.
The three men accused of being his accomplices - Marc Schoeman, Gerard Botha and Gary Newman - were acquitted of all charges against them last month.
Cohen told Judge Anton Veldhuizen that Van Staden “lived in luxury” with his stolen millions.
Cohen said that of the 2014 to 2015 financial year, 256 individuals/entities were convicted of cases involving R169m fraud. “It is evident that the prejudice for which Van Staden had been convicted in this case alone, exceeds the total for the full 2014/15 financial year.”
What shocked the State most was that Sars was not able to recover any of the millions in Van Staden’s possession.
An additional R2m was also spent by Sars to investigate the fraud in the eight years the trial has dragged on.
“Tax defrauding is an offence against society in which the offender inevitably gains an unfair advantage over compliant taxpayers, giving the offender an undeserved competitive advantage, whilst at the same time shifting an increasing tax burden onto compliant taxpayers both in terms of having to fund the national tax budget and in having to deal with potential increased Sars requests for documentation.”
He said Van Staden’s actions will have a significant impact on government’s ability to provide services to the citizens of South Africa.
The funds misappropriated by Van Staden could have paid the old age grants, disability grants and care-dependency grants of at least 166 667 people for a month or finance the child support grants of 714 286 children for the same period.
When the amount was adjusted for inflation, Sars’ loss would approximate R370m .
Van Staden will hear his fate on Friday.
gadeeja.abbas@inl.co.za
Cape Argus