A court found that fraud and tax-related charges against Durban businessman Thoshan Panday had not been proved beyond reasonable doubt.
Panday was charged with fraud and contravening the Tax Administration Act in 2024. The allegations centred around claims that he had knowingly understated his income to the revenue services.
Panday has been acquitted on 26 charges and given a suspended R5,000 fine for failing to register for VAT.
The Investigating Directorate Against Corruption, the National Prosecuting Authority unit that brought the case, said it would study the judgment before deciding its next step.
Directorate spokesperson Henry Mamothame said, “He was acquitted on 26 charges and convicted on one charge for failure to register for VAT. He was thus given a fine of R5,000, wholly suspended for five years.”
“The IDAC will study the judgment before making a decision on the way forward.”
Panday was arrested on September 5, 2024, and charged with fraud and contravening the Tax Administration Act, over claims that he had defrauded Sars of R7.3m.
Panday’s attorney, Kershnie Govender, stated that the court had found Panday did not intend to deceive or defraud Sars. She said the evidence had shown that his income was understated in some tax filings and overstated in others.
He still faces racketeering, fraud, corruption, money laundering and forgery charges in the separate World Cup case, over accommodation his companies supplied to the police for the tournament.
His eight co-accused include former KwaZulu-Natal police commissioner Lieutenant General Mmamonye Ngobeni, former colonel Navin Madhoe and former captain Ashwin Narainpershad, as well as Panday’s mother, wife, sister, brother-in-law and former personal assistant.
The state alleges the offences were committed between March 2009 and April 2010. The trial has not yet started.
