The South African Revenue Service (SARS) has stated that the sentencing of André Claude Dickoumba-De-Diguela to 25 years’ straight jail in a complicated R62 million VAT fraud scheme represents a significant enforcement accomplishment, sending a strong message that tax offences will be prosecuted.
SARS said in a statement that Assistance Médicale Internationale CC and its sole member, Dickoumba-De-Diguela, entered into a guilty plea under a section 105A plea agreement, admitting to 127 counts of fraud and 66 counts of money laundering in connection with fraudulent VAT refund claims made over a 12-year period.
The Specialised Commercial Crimes Court in Palm Ridge sentenced Dickoumba-De-Diguela to 15 years in prison for fraud, five years suspended, and 10 years for money laundering, for a total of 25 years. 
“The sentence follows the successful investigation and prosecution of fraudulent VAT refund claims that were systematically perpetrated over a dozen years, highlighting SARS’s determination to protect the integrity of the tax system and safeguard public revenue from abuse,” SARS said in what its Commissioner Dr Johnstone Makhubu described as a ‘victory in the fight against tax fraud, financial crime, and the abuse of the VAT system.’
Dr Makhuku stated that this result demonstrates the effectiveness of SARS’ investigative and enforcement skills, as well as the need of collaborating with law enforcement and prosecuting authorities in bringing complex financial crimes to trial.
“Fraudulent VAT refund claims are not simple administrative errors,” the commissioner said. “They are carefully calibrated acts of criminality that defraud the country’s revenue base, harm honest taxpayers, and deprive the government of the resources necessary to provide essential public services. Every rand lost to fraud Every rand lost to fraud could have supported economic development, infrastructure, healthcare, education, and other vital services. to support economic development, infrastructure, healthcare, education, and other vital services.”
SARS is increasing its use of data-driven intelligence, advanced risk-detection tools, and strategic partnerships to detect suspicious activity and complicated tax crimes.
The tax master warned individuals who intentionally submit incorrect information, inflate deductions, conceal income, or attempt to gain refunds that they will face punishment.
Instead, it promotes voluntary compliance, particularly when taxpayers have access to digital services,’more prefilled information, and quicker means to complete their duties.’
“But simplicity for honest taxpayers must never be mistaken for weakness in the face of deliberate fraud. Those who fabricate VAT refunds, conceal the proceeds, and launder money threaten our country’s financial stability. SARS will follow the evidence and work with relevant authorities to ensure that deliberate non-compliance carries real consequences.”
Dr Makhubu commended the collaboration between state institutions to bring the matter to finality.
