FORMER SARS EMPLOYEE AND REGISTERED TAX PRACTIONER SENTENCED FOR FRAUD

17 NOVEMBER 2025

FORMER SARS EMPLOYEE AND REGISTERED TAX PRACTIONER SENTENCED FOR FRAUD

Bellville, South Africa: The Bellville Regional Court has sentenced former South African Revenue Services employee and registered tax practitioner, Michael Benson, to an effective 6-year direct imprisonment following his conviction for fraud, forgery, uttering and failing to keep proper records. The court convicted Benson on 11 counts of fraud for submission of false VAT201 returns and claiming undue Value Added Tax (VAT) refunds, 27 counts of fraud for submission of false documents to South African Revenue Services (SARS) to justify the false VAT claims, 24 counts of forgery, 24 counts of uttering and a count of failing to keep proper records.

State Adv Wimpie Els of the Specialist Tax Unit led evidence which revealed that over a period of 25 months, Benson submitted eleven fraudulent VAT201 returns to SARS, claiming refunds based on wholly fabricated information. Upon being requested to provide substantiating documentation, he committed further fraud by producing forged invoices, bank statements, and municipal contracts, thereby committing further offences of forgery and uttering.

The accused previously worked as a VAT auditor and compliance officer at SARS (1997–2000) and was a qualified and registered tax practitioner (SARS and SA Auditors Board) during the period of the commission of the offences. At all material times relevant to the charges, the accused was a tax practitioner. During this period, the accused, in true criminal style, submitted eleven (11) false VAT210 returns to SARS, fraudulently claiming an amount of R1,7 million. Pursuant to these misrepresentations, SARS effected payment of R 1,58 million into the accused’s bank account. SARS blocked the final claim upon discovering the fraudulent claims the accused submitted.

Upon being requested by SARS auditors to furnish substantiating documentation for the aforesaid claims, Benson fraudulently produced forged tax invoices purporting to justify the VAT refunds received. These forged documents were presented to SARS as being genuine invoices. It should further be noted that the Accused was previously employed by SARS in the capacity of an auditor from 1997 until 2000, during which time his duties included conducting audits on individual and corporate taxpayers to ensure compliance with tax legislation. The offences were perpetrated over a continuous period of 25 months.

Adv Els argued that Benson did not voluntarily desist from his unlawful conduct. This occurred solely due to the SARS intervention. Even after detection and a formal request to provide proof of the claimed amounts, he persisted in his fraudulent scheme by fabricating additional false invoices, bank statements, and municipal documentation to legitimise the misappropriated funds. He has made no restitution to SARS following the discovery of the offences. His conduct was deliberate, premeditated, and executed with meticulous planning.

The accused, being a professional bound by statutory and ethical obligations to render loyal, honest, and truthful services to SARS, his regulatory body and the taxpaying public, instead elected to act unlawfully for personal enrichment. Rather than upholding these duties, he engaged in criminal conduct, fully aware of the consequences should his actions be detected.

The sentence imposed should serve as a deterrent to other tax practitioners, emphasising that participation in schemes designed to defraud SARS will attract severe penalties, including direct custodial sentences, with no prospect of mitigation through repayment or fines. Tax practitioners are reminded that their professional services are rendered for remuneration, not for illegal self-enrichment. Those who deviate from lawful practice and provide fraudulent advice will inevitably face prosecution and imprisonment, as occurred in this matter.

Despite his subsequent plea for leniency, the court found that he acted with knowledge and intent and therefore bears full responsibility for his conduct. The court sentenced the accused to 10 years' direct imprisonment for the 37 counts of fraud taken together for purposes of sentence. The court suspended four years of his sentence on condition that he is not convicted of fraud, theft or attempt thereto, committed during the period of suspension. For the charges of forgery and uttering, he was sentenced to four years' direct imprisonment, wholly suspended for 5 years on condition that he is not convicted of forgery or uttering, committed during the period of suspension. For failure to keep proper records, the court fined the accused R4 000 or, in default, to undergo eight months imprisonment, wholly suspended for 5 years on condition that he is not convicted of contravening Section 234(e) of the Tax Administration Act, Act 28 of 2011, committed during the period of suspension.

The court declared Benson unfit to possess a firearm in terms of section 103 (1)(g) of the Firearms Control Act 60 of 2000. It authorised a warrant for search and seizure for all competency certificates, licences, authorisations and permits issued to the accused in terms of Section 103(4) of the Firearms Control Act 60 of 2000, all firearms in possession of the accused and all ammunition in the accused’s possession.

The National Prosecuting Authority (NPA) welcomes the conviction and sentencing of the former SARS employee and registered tax practitioner. 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. 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. This 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. The rule of law applies equally to all, and those who defraud the state or exploit citizens will be brought to justice.

Issued by:

Eric Ntabazalila

National Prosecuting Authority

Regional Communications Manager – Western Cape

Tel: (021) 487 7308

Mobile: 073 062 1222