Former Telkom CEO Sipho Maseko Convicted Over 85 Outstanding Tax Returns
- Former Telkom chief executive Sipho Nkosinathi Maseko was convicted at the Palm Ridge Magistrate's Court following a tax compliance investigation
- The case involved more than 85 outstanding tax returns across five corporate entities where Maseko served as a director
- The conviction formed part of Project Honey Badger, a joint enforcement initiative involving the NPA, SARS, and the Hawks
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SOUTH AFRICA — The state’s campaign against corporate tax non-compliance reached a milestone at the Palm Ridge Magistrate's Court with the criminal conviction of Sipho Nkosinathi Maseko, the former chief executive officer of Telkom Group. Magistrate proceedings concluded with guilty verdicts across 85 statutory violations of Section 234(2)(d) within the Tax Administration Act 28 of 2011 as the South African Revenue Service continues to target high earners.
According to Eyewitness News, the underlying offense involved five separate corporate entities where Maseko held directorship duties beside business associate Sonwabo Mtshazo. Over multiple financial periods, these businesses defaulted on mandatory revenue filings covering three core fiscal mechanisms.
These included Pay-As-You-Earn employee withholdings, Value-Added Tax submissions, and Corporate Income Tax returns. State Prosecutor Advocate Athenkosi Mancoba submitted that continuous omission of statutory documentation cripples the South African Revenue Service’s capability to assess tax liabilities and collect revenue vital for public expenditures.
Project Honey Badger targets board executives
The criminal case emerged from routine audit tracks opened in late 2025 under Project Honey Badger—a joint enforcement structure bringing together the National Prosecuting Authority, revenue enforcement, and the Hawks. Unlike typical financial prosecutions, authorities initiated the investigation internally without relying on whistleblowers or public tip-offs.
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Court records confirm that an admission-of-guilt penalty amounting to R85,000 was settled on behalf of the implicated corporate entities. Furthermore, representatives have supplied all delinquent filings to SARS to enable final tax assessments. NPA media representative Magaboke Mohlatlole emphasized that this outcome serves as a clear warning to company officers nationwide that executive authority does not grant immunity from statutory tax compliance.
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SARS ruling to benefit property sector
In a related article, Briefly News reported on the Supreme Court of Appeal’s ruling that upfront loan-raising fees can qualify as tax-deductible financing costs under the Income Tax Act. The decision followed a dispute between SARS and Bloemfontein-based Cornucopia Trust.
The ruling could benefit debt-reliant sectors, including property, renewable energy and infrastructure. The court found that upfront fees can function like interest, while making clear that other costs, such as legal and advisory fees, remain non-deductible.
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Source: Briefly News
