VAT Refund Fraud Leads to 25-Year Prison Sentence

Posted 12 July 2026 Written by Acts Online
Category Tax

Brought to you by SAnews: In terms of the Value-Added Tax Act, No. 89 of 1991, and the Prevention of Organised Crime Act, No. 121 of 1998, the South African Revenue Service (SARS) has secured a 25-year prison sentence against André Claude Dickoumba-De-Diguela and his company, Assistance Médicale International, following convictions on 127 counts of fraud and 66 counts of money laundering.

The fraudulent activities, which spanned a 12-year period, resulted in the submission of illicit VAT refund claims totaling R62 million. The sentencing highlights SARS’s escalated enforcement capabilities and its strategic focus on prosecuting deliberate tax evasion and financial crimes rather than treating such infractions as mere administrative errors.

According to SARS Commissioner Dr Johnstone Makhubu, the revenue authority is actively leveraging inter-agency cooperation and advanced investigative techniques to target complex tax and financial crimes. While SARS continues to promote voluntary compliance through simplified digital services and prefilled tax returns during the filing season, the commissioner warned that deliberate non-compliance and the fabrication of VAT refunds will face severe criminal prosecution.

What this means for you, your business, or your clients

  • For yourself: Tax practitioners and legal advisors must exercise heightened due diligence when signing off on VAT returns, ensuring they do not unwittingly facilitate or become complicit in fraudulent refund schemes.
  • For your business: Corporate entities must review their internal financial controls and VAT accounting systems to ensure all refund claims are fully substantiated by valid tax invoices, thereby mitigating the risk of triggering invasive SARS audits.
  • For your clients: Advise clients that SARS is actively prosecuting VAT discrepancies as criminal offenses; any historical errors or unauthorized refund claims should be proactively resolved through the Voluntary Disclosure Programme (VDP) to avoid criminal prosecution.

Originally published at https://www.sanews.gov.za/south-africa/vat-refund-fraudster-sentenced-25-years

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