Five arrested for R35 million VAT fraud

Five people were arrested in connection with alleged VAT fraud amounting to R35 million, the SA Revenue Service (SARS) said.

"They were arrested in a swoop by the SA Police Service and SARS at five different premises in and around Johannesburg early this morning," said spokesperson Adrian Lackay.

A former SARS employee had acted as a bookkeeper to about 12 companies, allegedly involved in a scam in which fraudulent VAT was claimed, Lackay said.

"SARS investigations into suspected irregularities indicated that the bookkeeper may have fraudulently registered a number of businesses in her name and names of other suspects.

"These businesses allegedly then proceeded to submit fraudulent VAT claims to SARS," Lackay said.

The five were in custody pending their first appearance in the Germiston Magistrate's Court tomorrow. - Sapa