Key Points:
- R1.8 Million Fraud: Dr. Chetty defrauded SARS by under-declaring income between 2015 and 2018.
- R500,000 Fine: He was fined R500,000 and given a suspended 10-year prison sentence.
- SARS-Hawks Collaboration: The case was solved through coordinated efforts between SARS, the Hawks, and the NPA.
EAST LONDON, South Africa — Authorities fined Dr. Kurunalingam Chetty, a 54-year-old medical doctor from East London, R500,000 after he defrauded the South African Revenue Service (SARS) of more than R1.8 million.
Arrest and Charges
On May 13, 2025, the East London Regional Court sentenced Chetty for violating the Tax Administration Act. The court also imposed a 10-year prison term. However, it suspended the sentence for five years, provided he avoids committing any further crimes involving fraud, theft, or tax evasion.
If Chetty fails to pay the R500,000 fine, he will spend five years in prison.
According to Warrant Officer Ndiphiwe Mhlakuvana, spokesperson for the Eastern Cape Hawks, SARS launched the investigation after identifying discrepancies. They then collaborated with the Hawks’ Serious Commercial Crime Investigation Unit and the National Prosecuting Authority (NPA).
Under-Reported Income Led to Investigation
“Between 2015 and 2018, Chetty unlawfully under-disclosed his income,” Mhlakuvana said. “SARS discovered inconsistencies and referred the case to the Hawks.”
As a result of the investigation, officials confirmed that SARS lost over R1.8 million due to the doctor’s false declarations. The phrase doctor fined for tax evasion underscores the severity of such financial misconduct.
Authorities arrested Chetty in 2023. On the same day, he appeared in court and secured bail of R10,000. He returned for multiple court appearances until his final sentencing in 2025.
Payment Terms and Legal Consequences
The court instructed Chetty to pay R50,000 immediately. Additionally, he must pay the remaining R450,000 in monthly installments of R25,000 over 18 months.
If he misses any payments, the court will enforce the five-year prison sentence.
“This case shows that tax evasion has serious legal consequences,” Mhlakuvana stated.
Ultimately, the doctor fined for tax evasion now stands as a warning to other professionals considering financial misconduct.
