Former Telkom group CEO Sipho Maseko has been convicted by the Palm Ridge magistrate's court for failing to submit tax returns on behalf of five companies where he served as a director. The companies, including One Fountain Properties, One Fountain Industries, One Fountain Capital, Afrifund Advisory Services, and Afrifund Investments, failed to submit over 85 tax returns over several years. Maseko faced 85 counts of contravening the Tax Administration Act.
The National Prosecuting Authority (NPA) reported that an admission-of-guilt fine of R85,000 had been paid on behalf of the entities. The state argued that Maseko and Sonwabo Mtshazo, as directors, were responsible for submitting pay-as-you-earn, value-added tax, and corporate income tax returns. The failure to submit tax returns hindered the South African Revenue Service (SARS) in its mandate to administer tax effectively and collect revenue.
The investigation into Maseko's failure to submit tax returns began in September 2025, after a case was opened. The NPA stated that it was not a joint investigation and that no tip-off had been received. The matter is part of Project Honey Badger, a government initiative aimed at improving tax compliance by prosecuting individuals and entities that fail to meet their statutory tax obligations.
The NPA welcomed the conviction, emphasizing the importance of complying with tax legislation and reminding taxpayers of their legal obligation to submit returns as required by law. State advocate Athenkosi Mancoba argued that the conviction reinforced the need for taxpayers to fulfill their tax obligations. The conviction is seen as a significant step in the government's efforts to clamp down on tax non-compliance.
According to NPA spokesperson Magaboke Mohlatlole, the companies have since submitted all their outstanding returns, enabling SARS to assess them. The submission of outstanding returns is a critical step in ensuring that taxpayers are compliant with tax laws and that revenue authorities can effectively collect taxes.
Maseko's conviction highlights the consequences of failing to submit tax returns. As a former CEO of a major South African company, his conviction serves as a reminder to other taxpayers of the importance of meeting their tax obligations. The government has been cracking down on tax non-compliance, and this conviction is part of a broader effort to improve tax compliance.
The Project Honey Badger initiative, led by the NPA, SARS, and the Hawks, aims to improve tax compliance by prosecuting individuals and entities that fail to meet their statutory tax obligations. The initiative has resulted in several convictions, and the government is expected to continue its efforts to clamp down on tax non-compliance.
Key points
- Former Telkom group CEO Sipho Maseko convicted for failing to submit tax returns for five companies
- The conviction is part of Project Honey Badger, a government initiative aimed at improving tax compliance
- The companies have since submitted all their outstanding returns, enabling SARS to assess them
