Two arrested for gold tax scam

2015-07-31 14:58
(File)

(File) (Shutterstock)

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Johannesburg - Two more people have been arrested as part of a crackdown on an illegal gold industry syndicate, South African Revenue Service (Sars) said on Friday.

"Following the arrests of three suspects linked to an illicit gold industry syndicate in May, an additional two suspects were apprehended and arrested by the... Hawks and [Sars] in Johannesburg last night [Thursday]," they said in a statement.

"This follows further intense investigations into the operations of the syndicate by Sars."

The syndicate is alleged to have fabricated over 16000 fraudulent invoices - worth around R437 million - to "show" purchases of second-hand gold jewellery.

"These fictitious purchases were used in claiming a fraudulent 14% notional value-added tax (VAT) input over the period 2010 to 2012, as well as understating their sales during the same period," Sars said.

Following the three arrested in May, more people who took part in the illegal operations of the syndicate, were uncovered. 

The illegal operations included fake invoices and defrauding the tax system by using second-hand goods registers and Sars VAT 264 forms, used to misrepresent second-hand jewellery purchases.

"Since August 2013, Sars has been investigating approximately 26 companies and individuals suspected of using fraudulent tax schemes to legitimise illegally mined or smuggled gold," the service said.

"In February 2015 a case was registered with the South African Police Service."

Since the investigations began, Sars had successfully prosecuted eight people and companies regarding tax compliance. 

The investigations had also led to Sars recovering around R65 million in outstanding payments.

Read more on:    johannesburg  |  crime

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
7 comments
Comments have been closed for this article.

Inside News24

 
PARTNER CONTENT
INFOGRAPHIC: New thinking required for retirement

Everything we believe about retirement is fast becoming outdated.

PARTNER CONTENT
WATCH: How education can change a life

A university education gives students the chance to create a better future for themselves, their families and to opportunity achieve their dreams.

/News

Book flights

Compare, Book, Fly

Traffic Alerts
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.