Tax crimes: 25-year sentence for man who defrauded SARS
· The South African
Those committing white-collar crimes are finally feeling the full might of the law. On Friday, 10 July, the South African Revenue Service (SARS) welcomed the sentence of Mr André Claude Dickoumba-De-Diguela.
Dickoumba-De-Diguela had defrauded SARS of R62 million in Value Added Tax (VAT) payments.
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Gabon National Sentenced to Prison for Tax Crimes
Dickoumba-De-Diguela, the sole member of Assistance Médicale Internationale CC, admitted to 66 counts of money laundering and 127 counts of fraud. The charges stem from fraudulent tax refund claims the company made over 12 years.
According to reporting by IOL, during sentencing, the National Prosecuting Authority (NPA) revealed the Gabon national had submitted falsified medical invoices to claim VAT refunds.
The NPA disclosed that to claim the refunds, the closed corporation made false representations regarding assistance it provided to foreign nationals getting treatment at South African medical facilities.
The businessman entered into a guilty plea in the Palm Ridge Specialised Commercial Crimes Court.
As a result of the plea, he was sentenced to 10 years for money laundering and 15 years for fraud; five years were suspended.
His conviction follows an investigation started by the Revenue Service in 2024.
SARS Welcomes the Sentencing
In the media release, SARS Commissioner Dr Johnstone Makhubu welcomed the sentence.
“SARS is working very hard to foster a culture of voluntary compliance,” Makhubu said.
The sentence comes as SARS increases its reliance on data, systems, and partnerships to identify potential tax crimes.
In the media release, the revenue service reiterated a stern warning to those deliberately submitting false tax information. It highlighted that those who indulge in these fraudulent activities, including hiding income or inflating deductions, should expect prosecution.
The Commissioner also highlighted the impact that tax crimes have on the economy.
“Every rand lost to fraud is a rand that could have been used to support economic development, infrastructure, healthcare, education, and other vital services,” Makhubu said.
He concluded by praising the sentence as a “legal success… in the fight against the depravity and crime engulfing our country and state institutions.”