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Home » SARS fines 83-year-old director and drug dealer in tax return compliance crackdown
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SARS fines 83-year-old director and drug dealer in tax return compliance crackdown

Kennedy MudzuliBy Kennedy MudzuliMarch 18, 2025Updated:March 18, 2025No Comments
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Convicted drug dealer and kingpin, Fadwan Murphy.
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In a growing crackdown on tax non-compliance, Albert John, an 83-year-old director of A John trading as Albert Vervoer, has been fined for failing to submit his tax returns over a period extending from March 2012 to June 2024.  

John appeared before the Potchefstroom Magistrate Court to answer to 15 counts of contravening Section 234(d) of the Tax Administration Act 28 of 2011, which mandates timely submission of tax documents. 

The South African Revenue Service (SARS) had issued reminders via telephone on 1 April 2022, followed by written notices, urging John to fulfil his tax obligations. However, despite these reminders, he did not submit his Pay-As-You-Earn (PAYE) and Value-Added Tax (VAT) returns, leading to his court appearance. Under South African law, PAYE returns must be submitted monthly, while VAT returns are typically required every two months.  

The case is part of a broader initiative known as the Honey Badger Project, a collaboration between the National Prosecuting Authority (NPA), the Directorate for Priority Crime Investigation, and SARS, aimed at enforcing tax compliance through rigorous legal action. During court proceedings, John opted to pay an admission of guilt fine of R15,000.  

Dr Rachel Makhari, the Director of Public Prosecutions in the North West, expressed satisfaction with the resolutions of these case. Makhari said the National Prosecuting Authority and Director of Public Prosecutions were reaffirming their commitment to addressing non-compliance and ensuring adherence to the law under the Honey Badger Project. 

In another matter, the Bellville Magistrates Court sentenced drug dealer and kingpin Fadwan Murphy to eight years direct imprisonment or a fine of R48 000 as the court convicted him for failure to submit Income Tax returns for himself and his company. 

Businessman Albert John and drug leader and kingpin Fadwan Murphy have been sentenced for contravention of tax laws. 

On 13 March 2025, the court sentenced Murphy on 16 counts of failing to submit Income Tax Returns for himself and his company, Ulterior Trading Solutions CC. On each count, he was sentenced to R6 000 or 12 months direct imprisonment with half suspended for five years on the condition that he is acquitted of the above offences during the period of suspension. His effective sentence is R3 000 or 6 months direct imprisonment per count, which amounts to R48 000 or 8 years imprisonment. 

Murphy is serving an effective 18-year direct imprisonment after the Western Cape High Court convicted him on a count of managing an enterprise conducted through a pattern of racketeering activity, conducting or participating in the conduct of an enterprise through a pattern of racketeering activity, receiving or retaining property derived from or through a pattern of racketing activity, 139 counts of attempt to deal in drugs, dealing in drugs, and 73 counts of money laundering. The court also fined him R2 million after the State successfully argued that his drug dealing came from his greed for money and power and that his actions destroyed communities and the people living in them. 

He was ordered him to submit all his outstanding returns to SARS on or before 19 September 2025. “The NPA welcomes the sentence as it commits itself in the fight against tax evasion crimes as they have far-reaching consequences on the fiscus,” said Eric Ntabazalila, NPA spokesperson in the Western Cape. 

SARS, tax compliance, Honey Badger Project, tax evasion, South African Revenue Service, tax returns, VAT returns, PAYE, tax prosecution, Fadwan Murphy, Albert John, tax non-compliance, NPA, tax law enforcement 

#Conviction 
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Kennedy Mudzuli

Multiple award-winner with passion for news and training young journalists. Founder and editor of Conviction.co.za

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