Hawks nail Gqeberha businessman in R4.7m VAT fraud

An elaborate tax fraud scheme valued at nearly R4.7 million came to an end with the conviction of a Gqeberha businessman. On August 18th, 2026, 54-year-old Sipho Christian Tys, the sole proprietor of Lisolanele Trading Enterprises CC, admitted guilt in the Gqeberha Specialised Commercial Crime Court for charges of fraud, forgery, and breaching of the Tax Administration Act.

The fraudulent VAT returns were submitted to the South African Revenue Service (SARS) e-filing system between 2015 and 2017, backed by fabricated invoices and bank statements, according to the Hawks. The irregularities were identified during a SARS audit, triggering an investigation by the Hawks. Ndiphiwe Mhlakuvana, spokesperson for the Hawks, emphasized that the case exemplified their resolve to eradicate intricate financial crimes.

He stated that the investigation exposed a deliberate pattern of document manipulation and fraudulent tax reporting, which was not a simple oversight, but a meticulously planned scheme to defraud the state. Investigations are still ongoing. Mhlakuvana also stated that the Hawks will continue to cooperate with SARS to ensure that anyone who manipulates tax systems for personal gain faces the full force of the law.

Tys was apprehended in 2021 and released on R5,000 bail. He made numerous court appearances before pleading guilty. The matter has been rescheduled for sentencing on October 16th, 2026. Mhlakuvana underlined that the conviction sends a strong message to those who engage in economic crimes. "Economic crimes undermine the integrity of our financial systems and rob the country of crucial revenue.

We will not permit individuals to benefit at the expense of the public." The case underscores the importance of vigilance in detecting irregularities and the efficiency of collaboration between SARS and law enforcement in combating commercial crime.