SARS uncovers scheme to defraud tax system

8 Oct 2015

PRETORIA: The South African Revenue Service (SARS) has foiled an attempt by a group of individuals to defraud the fiscus of R266 million, it said on Thursday, 8 October 2015.

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"SARS foiled an attempt by a group of individuals to defraud the fiscus of R266 230 423. The individuals, representing a registered company in South Africa, claimed the amount as a fraudulent Value Added Tax (VAT) claim earlier this year," said the revenue service.

According to the company, they paid an amount of R266 230 423 to their employees and were seeking to claim this figure as a VAT refund.

"Suspecting fraudulent activities, SARS requested supporting documents. The documents confirmed that the refund was indeed fraudulent. With the assistance of the South African Police Service (SAPS), the group was arrested at the SARS head office in Pretoria yesterday on charges of fraud," it explained.

According to SARS, early indications suggest that the group's alleged criminal activities are not solely limited to fraudulent VAT refunds, but also include building and company hijackings.

"SARS is acutely aware of individuals and groupings who aim to defraud the country's tax system. Members of the public are reminded that SARS remains vigilant in detecting fraud and views such acts extremely seriously."

Source: SAnews.gov.za

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