FORMER SARS EMPLOYEE SENTENCED FOR FRAUD AND ILLEGAL POSSESSION OF A CELLPHONE WHILE IN PRISON
23 JUNE 2025
FORMER SARS EMPLOYEE SENTENCED FOR FRAUD AND ILLEGAL POSSESSION OF A CELLPHONE WHILE IN PRISON
Cape Town, South Africa - The Cape Town Regional Court has sentenced Faried van der Schyff to an effective three years' direct imprisonment after he was successfully prosecuted for fraud, failure to register as a tax practitioner as required by the Tax Administration Act, and illegal possession of a cellphone while in custody. Van der Schyff worked for the South African Revenue Services (SARS) from 1992 to 1997 and subsequently started an accounting business which traded as VDS Financial Services and Advisors. He provided tax advice to members of the public in Belhar, Athlone and surrounding areas, with clients brought under the impression that he is knowledgeable and equipped to address all their SARS-related responsibilities.
He was not registered as a tax practitioner, as required by the Tax Administration Act. The Tax Administration Act requires anyone who renders tax-related services to others to be registered as a tax practitioner. A person can only register as a tax practitioner once he or she is registered with one of the recognised professional control bodies. These bodies have very specific requirements that individuals must meet to be able to qualify for registration. The purpose of the requirement is to ensure those entrusted with the tax affairs of members of the public are properly qualified, fit and proper people who, continuously, develop their expertise and are tax compliant as individuals and in their business dealings.
They also ensure that the necessary reporting, investigation, and, if applicable, consequences follow non-adherence not only to their own rules and regulations, but also to the tax legislation and SARS prescripts. The accused was not registered with a professional controlling body and ignored SARS’ warnings in that regard. The accused incorrectly dealt with the tax affairs of members of the public. This situation is like a so-called “attorney” or a so-called “doctor” rendering services to the public, whereas the person is not registered to render these services. He not only practised as a “tax practitioner” unlawfully, but also fraudulently filed an income tax return on behalf of one of his clients to ensure a credit arose so that the client’s debt with SARS would be erased by this fraudulent credit.
The complainant in the fraud count was in debt to SARS and the accused falsely with the intent to defraud SARS filed an Income Tax return in which he declared that the taxpayer paid employee’s tax of more than R225 000 knowing that the taxpayer was not employed for the period and did not pay any employee’s tax. The interim net result of the accused’s fraudulent actions was a tax credit for the taxpayer, which then erased his debt. When SARS audited this client, Van der Schyff denied his involvement and the taxpayer was left with an enormous amount of debt towards SARS. The effect of the fraudulent income tax return was reversed, and the taxpayer was left with a much larger debt, as well as the interest and penalties to be paid, all due to the accused’s actions. The fraudulent actions of the accused did not assist the taxpayer but caused his tax affairs to be in breach of statutory obligations.
The State also proved that while in custody awaiting trial at Pollsmoor Prison, on an unrelated matter also involving tax fraud, the accused furthermore showed complete disregard for the laws of the country by being found in possession of a cellular phone, which is regarded as an unauthorised item in a correctional facility. According to the Acting Head of Security at Pollsmoor Prison, possession of cellphones by detainees and inmates is a serious problem and causes huge risks to the security of the facility and the public at large.
The accused has previously been convicted of fraud at Strand Magistrate’s Court on 4 March 2020. He committed this fraud in August 2019 in Gordons Bay and was sentenced to a fine of R4000 or 12 months imprisonment that was wholly suspended for three years on condition that he is not convicted of fraud or a similar offence that is committed during the period of suspension.
For the present charges, he was sentenced to three years' direct imprisonment for fraud, two years' direct imprisonment for failure to register as a tax practitioner as required by the Tax Administration Act and two years' direct imprisonment for illegal possession of an unauthorised item whilst incarcerated in a correctional services facility. The court ordered that the sentences run concurrently.
The National Prosecuting Authority (NPA) reaffirms its commitment to holding public servants accountable, regardless of their former positions of authority. The conviction of the former SARS employee underscores the principle that no one is above the law and highlights the serious consequences of fraudulent conduct, which erodes public trust, undermines state institutions, and negatively impacts service delivery. Prosecuting fraud against the state remains a top priority for the NPA.
Issued by:
Eric Ntabazalila
National Prosecuting Authority
Regional Communications Manager – Western Cape
Tel: (021) 487 7308
Mobile: 073 062 1222