Mpisane asked Sars for help, court hears

2012-11-08 18:57
Shauwn and S'bu Mpisane (Picture: City Press)

Shauwn and S'bu Mpisane (Picture: City Press)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Durban - Businesswoman Shauwn Mpisane asked tax officials to help her make sure she was tax compliant, the Durban Regional Court heard on Thursday.

Mpisane told the court she asked the SA Revenue Service (Sars) to look into her cleaning company's books in 2008 because business had picked up and it was growing.

"I needed people with knowledge of how to run [the] books of Zikhulise," she said.

Mabongi Flora-Junior "Shauwn" Mpisane is accused of inflating invoices by more than R5m to cut her tax bill.

She is also accused of violating the Close Corporations Act by remaining the sole member of Zikhulise Cleaning, Maintenance and Transport CC when she had a previous fraud conviction.

She has pleaded not guilty.

The court is holding a trial-within-a-trial to determine the admissibility of evidence submitted by the State.

It has submitted as evidence 148 invoices obtained from Mpisane during Sars's alternative dispute resolution (ADR) process.

Under Sars legislation, any information provided during this process is confidential.

Mpisane said she asked Sars for help after her husband S'bu, a metro police officer at the time, came under media scrutiny in 2008 because of his lifestyle. Sars had wanted to audit him.

Mpisane said she had asked Sars to check whether she was tax compliant for the period 2003 to 2007, because the 2008 financial results were not ready.

She said Sars had recommended some auditing companies, but that the auditing firm SAB&T was available.

It recommended that she got an in-house auditor, as her company was growing. An accountant who had just completed his articles was assigned to audit Mpisane's company.

Mpisane criticised Sars for using information she had volunteered in 2003 to prosecute her. Sars officials handed the matter to the National Prosecuting Authority.

Mpisane was convicted on 62 counts of fraud in 2004. Mpisane said when Waheeda Osman, a Sars auditor in Durban audited a draft statement she had submitted in 2008, she was puzzled and that her conduct was questionable.

Osman raised taxable profits of about 61% for the financial year of 2008 which was unreasonable, Mpisane said.

Mpisane told the court that her financial manager Kishal Reddy was incompetent.

Earlier, the court heard that Mpisane's application with the Sars Voluntary Disclosure Programme (VDP) was rejected.

Mpisane applied for voluntary disclosure in July 2011 and it was rejected by February 2012.

Her application was submitted after she was charged with fraud and corruption.

According to Sars group executive of the legal and policy division, Johan Vlok Symington, the programme allowed for an entity or a person to enter into a process where a taxpayer disclosed information to Sars and provided a tax payer an opportunity to resolve any outstanding affairs.

Symington said the information remained confidential and could not be accessed by any other units within Sars.

Mpisane's application was unsuccessful because of investigations of VAT defaults that had been instituted against her, he said.

Defence advocate Jimmy Howse said Sars dealt with Mpisane's application unfairly, because the findings on her application stated it was rejected because of the investigations.

Howse said some acts of the VDP were not considered when the findings were made.

He said the Sars official who dealt with Mpisane's application did not apply her mind when she made the decision.

The trial continues on Friday.

Read more on:    sars  |  shauwn mpisane  |  durban

Join the conversation! encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Inside News24

Watch: Investing in the future through child development

An investment of R32-million into 11 early childhood development centres is changing the future for children in the Northern Cape.

Partner Content
What all investors should know about index investing

Index-linked investments are growing fast in popularity globally, and are growing in size and complexity too.


For the love of Corgis!

WATCH: 35 Corgi's to make your day! If they’re good enough for the Queen of England they’re good enough for us.



Can we communicate with our pets?
8 great natural remedies for your pet
Buying a puppy? Don’t get scammed!
WATCH: These funny animal videos will make you LOL!
Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.


Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.