George - Two suspects have been arrested for allegedly defrauding municipalities, the Directorate for Priority Crime (the Hawks) said in a statement on Wednesday.
Hawks spokesperson Captain Lloyd Ramovha said the suspects, a 42-year-old man and a 49-year-old woman, were arrested after an internal South African Revenue Services’ (SARS) investigation “relating to unclaimed Input VAT claims by several Western Cape municipalities, for the period 2009 to 2011”.
“It is alleged that a tax consultant company under the duo’s directorship was contracted by Oudtshoorn, Venterdorp 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,” Ramovha said.
Ramovha said VAT assessment figures were allegedly inflated and claims were repeatedly submitted. This resulted in the Receiver of Revenue suffering losses of about R16 million.
The pair is expected to appear in the George Magistrate’s Court on October 4. They will be charged with fraud and contravening the Value Added Tax Act.
African News Agency