Mbabane – The Eswatini Revenue Service (ERS) has worked with the courts to secure convictions against company directors, business operators and a clearing agent for various offences including tax evasion, failure to file returns, forgery and false customs declarations.
ERS reported on June 29, 2026, that the recent court convictions serve as a reminder that compliance with tax laws is every taxpayer’s responsibility, saying it remains committed to helping taxpayers meet their obligations while taking firm action against deliberate non compliance.
In one of the most significant cases, three directors of Cypress Basket, Mlungisi Maphosa, Cisco Sebenele Shabangu and Nathi Peverourt Nhleko, along with two related entities, were convicted on six counts of tax evasion and VAT related offences after investigations revealed that the company under declared its 2021 gross income, reporting E330,000 instead of the actual E2,138,390, an understatement of more than E1.8 million. 
The court further found that the company failed to register for VAT despite exceeding the E125,000 threshold, having generated E144,044 by March 2020.
In a related matter, director Maphosa faced additional charges related to Emajekwane Investments for failing to file income tax returns despite earning taxable income of E434,470 in 2020 and E232,057.74 in 2021. The company was also convicted for failing to file a return after generating E252,750 in 2021.
The court found all accused guilty and imposed custodial sentences of one to two years per count, with each paying an effective E3,000 after bail was converted into a fine.
In another case pointing to customs fraud risks, Makhosemvelo Sibongumenzi Dlamini of Nitto World Clearing Agent was convicted of forgery and uttering after submitting falsified customs documents to ERS officials at Ngwenya Border Gate.
Investigations revealed that he forged a First National Bank proof of payment and a Gobid invoice, which were presented as genuine to facilitate customs clearance. The court found the documents were intended to mislead customs authorities. He was convicted on one count of forgery and one of uttering and sentenced to one year’s imprisonment or a fine of E1,500 per count, with sentences running concurrently. He paid the fine.
At the Lobamba Magistrate’s Court, Bheki Dlamini of Buka was convicted on 20 counts of failing to submit tax returns and PAYE declarations between August 2024 and March 2026. He also failed to submit an annual income tax return for the 2025 tax year despite operating a business with employees. He was fined E1,000 per count or imprisonment, with concurrent sentencing resulting in an effective fine of E2,000.
In a separate customs enforcement case, two directors of Tsembeka Bobhuti trading as Planet Cellular, Sakib Rafik Patel and Sahil Zarhir Ismail Patel, were convicted of making false declarations under the Customs and Excise Act following the importation of approximately 664 cellphones valued at E436,810 through Ngwenya Border Post.
The court heard that a fraudulent invoice and declaration documents were used during clearance. Investigations also revealed that the consignment was not properly declared upon entry. The court found the false declarations were intended to mislead customs authorities and avoid proper tax assessment.
The directors and their company were each sentenced to two years’ imprisonment or a fine of E2,000, resulting in a total fine of E6,000, and were ordered to pay the correct VAT due on the consignment.
ERS Commissioner General Brightwell Nkambule restated the organisation’s balanced approach of taxpayer support, voluntary compliance initiatives and firm enforcement. He encouraged taxpayers with outstanding obligations to use the enhanced Sondzela Sikhulume Programme to regularise their affairs.
“These cases demonstrate that compliance with tax laws is not optional. We reiterate that taxpayers should come talk to us if they have any challenges,” Nkambule said.
For more information or assistance, taxpayers can visit www.ers.org.sz, email info@ers.org.sz, call the Contact Centre on 2406 4050 or WhatsApp 7606 3735.
