Tax consultants nabbed for R16 million fraud

2016-09-14 21:10
SARS office. (Duncan Alfreds, News24)

SARS office. (Duncan Alfreds, News24)

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Cape Town - The directors of a tax consultant company contracted by three municipalities have been arrested for tax fraud of about R16m, the Hawks said on Wednesday.

Spokesperson Lloyd Ramovha said their arrest followed a lengthy Sars investigation into the municipalities between 2009 and 2011.

"It is alleged that [the] company… was contracted by Oudtshoorn, Ventersdorp and Plettenberg Bay municipalities to assist in recovering unclaimed Input VAT for these periods, and in return, the entity was paid lucratively for each successful tax recovery made," he said.

"Investigations laid bare the fact that the entity was somehow allegedly inflating their VAT assessment figures as it stood to benefit directly.

“Claims were somehow allegedly repeatedly submitted, even on items already claimed in previous periods, or claimed on items which are prohibited by the VAT Act, resulting in the Receiver of Revenue suffering losses to the tune of approximately R16m."

The two directors were arrested by the Hawks’ commercial crimes unit on Tuesday.

The 42-year-old man and the 49-year-old woman were expected to appear in the George Magistrate’s Court on October 4 on charges of fraud and contravening the Value Added Tax Act.

Read more on:    crime  |  corruption
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