Director Tshepo Khoza of Grey Apple Trading Enterprise (Pty) Ltd, was found guilty on three counts of fraud, one of which falls under Schedule 5 category (serious crimes) and one count of failing to register for Value-Added Tax (VAT) in contravention of section 234 of the Tax Administration Act.

The Investigating Directorate Against Corruption (IDAC) in collaboration with the South African Revenue Service (SARS) and other law enforcement agencies were successful to put behind bars Khoza for tax fraud after he was linked to systemic corruption within state procurement processes.

The conviction followed the extensive investigations under Project Blue Lights, which uncovered that Grey Apple Trading Enterprise received tenders from the South African Police Service (SAPS) linked to the DNA project that resided under forensic science laboratory.

The tenders were awarded due to Khoza’s family relationship with a senior SAPS official.

This was despite the fact that Khoza was earning approximately R3.6 million between 2015 and 2018.

Khoza falsely declared the company to be dormant and failed to declare income to SARS.

The corruption trial for other people who are charged with Khoza will resume on 22 February 2026.

SARS Commissioner Edward Kieswetter together with IDAC Head, Advocate Andrea Johnson acknowledged the teamwork that led to this conviction, reinforcing the public’s trust in joint efforts to uphold tax compliance and fight corruption.

“Tax fraud is not a victimless crime. It is theft from the national fiscus and, ultimately, from the millions of South Africans who depend on government services for education, healthcare and social support. Every rand stolen through fraudulent schemes undermines our country’s ability to deliver on its constitutional mandate.

“SARS will not tolerate such conduct. We will pursue every case relentlessly, and those who choose to defraud the system must know that accountability is certain and justice will prevail,” he said.

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By 30 September 2025, SARS recorded net revenue of R924.7 billion, up R78.6 billion from the previous year, and R18 billion above initial estimates. Nearly half of this growth came from stronger compliance efforts, reflecting a positive trend for the months ahead.

Commissioner Edward Kieswetter expressed support for the Minister’s fiscal roadmap, calling it a clear and practical plan for South Africa’s financial sustainability. He noted that SARS remains committed to boosting revenue collection, improving compliance, and facilitating trade through operational excellence and innovation.

SARS’s compliance programme has also delivered encouraging results, securing R131.6 billion from compliance activities—an increase of R9 billion compared to last year. Debt collections rose to R47.1 billion, up by 7.5%. Kieswetter credited the achievement to the dedication of SARS employees and compliant taxpayers, emphasizing their vital role in strengthening South Africa’s fiscal stability.

Revenue performance remained strong across major tax categories, including Corporate Income Tax (CIT), PAYE, Dividends Tax, Domestic VAT, and the General Fuel Levy.

CIT provisional tax payments reached R164.5 billion, growing by 9.5%, while PAYE collections totaled R371 billion—up by R30.9 billion (9.1%) from last year. Domestic VAT collections increased by R21.1 billion (7.8%), driven by solid performances in the finance, retail, and manufacturing sectors.

SARS also noted improvements in VAT refund management and a 5% growth in General Fuel Levy collections, thanks to increased import declarations. However, the agency acknowledged lower collections in some personal income tax categories, partly due to higher refund payments.

Looking ahead, Kieswetter reaffirmed SARS’s focus on building a smart, modern institution anchored in integrity and trust. He stressed that strong domestic revenue collection remains vital to reducing debt and dependence on external funding.

To further support SARS’s efforts, the government has allocated an additional R7.5 billion over the Medium-Term Expenditure Framework (2025–2028). This funding aims to enhance compliance, strengthen operations, and maintain the positive momentum in South Africa’s fiscal outlook.

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