A cigarette manufacturing company has allegedly defrauded the South African Revenue Service of R48-million by falsely claiming to export cigarettes, Sars said on Wednesday.
The police, Sars and Scorpions raided the company, Mastermind Tobacco South Africa, in East London on Wednesday, and arrested four staff.
"Three of the arrested persons are employed by Mastermind Tobacco... manufacturing brands such as 'Yes' and 'Forum'," said Sars spokesperson Adrian Lackay.
"The company itself, together with the arrested employees, stands accused of having allegedly defrauded Sars of at least R48-million.
"The fraud is alleged to have been committed by means of falsely representing to Sars that certain consignments of cigarettes were exported, whereas in reality this was not the case," Lackay said.
Products manufactured in South Africa destined for export are VAT-exempt.
A joint investigation by Sars and the Scorpions found that documents presented by Mastermind to the customs office in East London since October 2003 - supposedly proving that the cigarettes were exported - were actually false, Lackay said.
The three arrested officials of Mastermind are Jennifer Nanette Putter, Pascal Wiehahn and Carmen Daniels.
The fourth person, a related party to Mastermind but not in their employ, was arrested and will appear in court on Thursday.
"Sars has been informed that warrants for the arrest of other, more senior officials of the company have been issued. Sars has also been informed by the Asset Forfeiture Unit that forfeiture proceedings against the company and individuals involved will be instituted shortly," Lackay said.
Evading VAT and excise duties on the manufacture and import of cigarettes is a multi-billion rand scam affecting customs and revenue agencies worldwide. - Sapa