Serving Drug Dealer and King Sentenced for Tax Fraud

17 MARCH 2025

Serving Drug Dealer and King Sentenced for Tax Fraud

Bellville, South Africa, The Bellville Magistrates Court has sentenced drug dealer and kingpin Fadwan Murphy to eight years direct imprisonment or a fine of R48 000 as the court convicted him for failure to submit Income Tax returns for himself and his company. On 13 March 2025, the court sentenced Murphy on 16 counts of failing to submit Income Tax Returns for himself and his company, Ulterior Trading Solutions CC. On each count, he was sentenced to R6 000- or 12 months direct imprisonment with half suspended for five years on the condition that he is acquitted of the above offences during the period of suspension. His effective sentence is R3 000- or 6 months direct imprisonment per count, which amounts to R48 000- or 8 years imprisonment.
Murphy is serving an effective 18-year direct imprisonment after the High Court of South Africa: Western Cape Division convicted him on a count of managing an enterprise conducted through a pattern of racketeering activity, a count of conducting or participating in the conduct of an enterprise through a pattern of racketeering activity, a count of receiving or retaining property derived from or through a pattern of racketing activity, 139 counts of attempt to deal in drugs, a count of dealing in drugs and 73 counts of money laundering. The court also fined him R2m after the State successfully argued that his drug dealing came from his greed for money and power and that his actions destroyed communities and the people living in them.

It ordered the registrar of the court to issue a warrant addressed to the Sherrif of the court, authorizing and directing him to recover the amount of the fine, plus an additional amount sufficient to cover the costs and expenses of the warrant, attachment, and sale in execution, by the attachment and sale of any movable property belonging to his company, Ulterior Trading Solutions CC. It further ordered if the proceeds of the sale of the movable property of Ulterior Trading Solutions CC are insufficient to cover the amount of the fine and the aforesaid costs and expenses, the registrar is authorized, on receipt of a return from the Sherrif stating that the proceeds are insufficient, to issue a warrant for the recovery on the unpaid amount from the immovable property of Ulterior Trading Solutions CC.

In a plea and sentencing agreement in this fraud case, Adv Conrad Heydenrych described Ulterior Trading Solutions CC as a close corporation that was registered as a taxpayer with an income tax reference number. Murphy was its sole member and representative taxpayer. He was also registered as a taxpayer with an income tax reference number who is required in terms of Section 66 of the Income Tax Act, Act 58 of 1962, to submit his and Ulterior Trading Solutions CC Income Tax Returns for assessment to the Commissioner and/or the South African Revenue Service (Sars). In terms of Section 25 of the Tax Administration Act, 28 of 2011 (“TAA”), Murphy is required to submit returns to Sars for both him and his company where is required to declare his and the company’s gross income as defined in Section 1 of the Income Tax Act, Act 58 of 1962. He failed to do the above

In aggravation of sentence, Adv Heydenrych argued that the responsibility to submit accurate tax returns to Sars is a burden that all taxpayers share. SARS relies on the honesty and diligence of each taxpayer to ensure the government can effectively collect all the necessary revenue. When tax returns are not submitted, SARS is unable to assess accurately the taxes owed, resulting in a potential gap in expected revenue. This, in turn, leads to an imbalance where those who comply bear a disproportionate share of the tax burden. This is unfair to those who comply, while at the same time, it also diminishes the funds available for public spending.

The court convicted and sentenced the accused and ordered him to submit all his outstanding returns to SARS on or before 19 September 2025. The NPA welcomes the sentence as it commits itself in the fight against tax evasion crimes as they have far-reaching consequences on the fiscus.

Issued by:

Eric Ntabazalila
National Prosecuting Authority
Regional Communications Manager – Western Cape
Tel: (021) 487 7308
Mobile: 073 062 1222