Cape Town - Arrests were imminent following the exposure of an elaborate fraud scheme which had already cost the South African Revenue Service (Sars) R39 million, Sars said on Friday.
Sars executed a search and seizure warrant at seven premises in Cape Town on Thursday as part of a probe into ongoing value-added tax (VAT) fraud in the Western Cape.
“The investigation has revealed an organised attempt to obtain undue VAT refunds from Sars,” said spokesman Luther Lebelo.
“The scheme utilised multiple corporate entities and individuals to extract over R39 million in false VAT refunds. Altogether, the perpetrators attempted to claim over R146 million in VAT refunds, with R39 million of that already paid out.”
Sars investigators have identified two “masterminds” behind the scheme - a Cape Town businessman and an unregistered tax practitioner who was previously employed at the revenue service.
“The investigation is ongoing and more suspects could be identified at a later stage. Arrests can be expected once investigations have been finalised,” Lebelo said.
“Sars views this type of behaviour as extremely serious and as a crime committed against all honest South African taxpayers. Sars is working closely with the National Prosecuting Authority to bring all such perpetrators to justice.”
ANA