Convicted drug dealer and kingpin Fadwaan 'Vet' Murphy has been sentenced for tax fraud.
Murphy was sentenced to eight years direct imprisonment or fined R48 000 for failing to submit Income Tax returns for himself and his company.
Bellville Magistrate's Court sentenced Murphy on 13 March 2025 for 16 counts of failing to submit his Income Tax Returns and that of his company, Ulterior Trading Solutions CC.
"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," National Prosecuting Authority (NPA) spokesman Eric Ntabazalila said.
Sentenced prisoner
Murphy is serving an effective 18 year direct imprisonment after being convicted of several charges in the Western High Court.
The charges include:
- 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.
Ntabazalila said the court also fined him R2m 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. The Sheriff of the Court was directed to attach his assets in order to recover the amount.
Tax fraud
In a plea and sentencing agreement in the recent fraud case, Advocate Conrad Heydenrych described Ulterior Trading Solutions CC as a close corporation that was registered as a taxpayer with an income tax reference number.
"Murphy was its sole member and representative taxpayer. He was also registered as a taxpayer with an income tax reference number who is required in terms of Section 66 of the Income Tax Act, Act 58 of 1962, to submit his and Ulterior Trading Solutions CC Income Tax Returns for assessment to the Commissioner and/or the South African Revenue Service (Sars). But he failed to failed to do the above," Ntabazalila said.
In aggravation of sentence, Heydenrych argued that the responsibility to submit accurate tax returns to Sars is a burden that all taxpayers share. "SARS relies on the honesty and diligence of each taxpayer to ensure the government can effectively collect all the necessary revenue. When tax returns are not submitted, SARS is unable to assess accurately the taxes owed, resulting in a potential gap in expected revenue. This, in turn, leads to an imbalance where those who comply bear a disproportionate share of the tax burden. This is unfair to those who comply, while at the same time, it also diminishes the funds available for public spending."
Murphy has until 19 September 2025 to submit all outstanding returns to SARS.
Weekend Argus