A long con comes undone

When news broke that a former South African Revenue Service employee had been sentenced to prison for a long-running VAT refund scam, many South Africans reacted with a mix of disbelief and weary familiarity. Stories of tax fraud circulate often enough, yet this one stood out because the mastermind was someone who once worked inside SARS and knew the system from the inside out.

Michael Benson, once a VAT auditor and later a registered tax practitioner, has now been sentenced to an effective six years in prison. His case unfolded in the Bellville Regional Court, where the scale of his scheme was laid bare. Over twenty-five months, he manipulated the VAT system, submitting false VAT201 returns and forging entire sets of paperwork to support claims that never should have existed in the first place.

How the scam worked

The National Prosecuting Authority explained that Benson filed eleven fraudulent VAT201 returns, each based on fabricated information. When SARS followed standard procedure and asked for supporting records, he escalated the deceit. He produced forged invoices, fictional bank statements, and municipal documents that appeared legitimate at first glance.

The court heard that SARS paid out roughly R1.58 million before investigators detected irregularities and blocked his final attempt. Instead of stopping there, he carried on manufacturing new paperwork, hoping to cover the trail already growing behind him. It was only the intervention of SARS that forced the scam to a halt. Advocate Wimpie Els emphasised that Benson did not stop willingly but only because he had been caught.

A breach of professional trust

For many in the tax and legal communities, the most troubling part of the story is that Benson was not an ordinary fraudster. He was a professional who knew the ethical and statutory duties attached to his work. The court noted that he chose personal gain over the responsibilities expected of someone in his position. In a country where trust in institutions is constantly tested, cases like this sharpen public frustration.

Social media reaction reflected this mood. Posts ranged from anger at the misuse of public funds to calls for stricter oversight of tax practitioners. Some pointed out that thousands of honest businesses battle to receive legitimate VAT refunds while fraudulent claims occasionally slip through.

The sentence and what it signals

For the 37 counts of fraud taken together, Benson received ten years in prison, with four years suspended. Additional sentences for forgery, uttering, and failure to keep proper records were also imposed but suspended for five years. He was fined and declared unfit to own a firearm, with all related items authorised for seizure.

The NPA described the outcome as a strong warning. Their statement emphasised that fraud involving public money will be treated seriously and those who manipulate tax systems will be held accountable. In a climate where South Africans demand stronger action against financial crimes, this sentencing adds weight to that commitment.

A reminder of the stakes

VAT fraud may sound like a technical crime, but it affects public coffers directly and erodes confidence in processes that millions depend on. For SARS, the case reinforces the importance of vigilance and improved systems. For the public, it is a reminder of how costly dishonesty can be when it targets revenue meant for national priorities.

Michael Benson’s downfall shows that even those who know the rules best are not beyond the reach of the law when they choose to bend them for personal gain.

Also read: The Inflation Squeeze Tightens: What Rising Prices Mean for Your Wallet

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Source: IOL

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