The South African Revenue Service (SARS) say a businessman, his accountant, and five connected closed corporations received a total of R110,385,975 in VAT refunds. The men claimed the VAT refunds by submitting fraudulent invoices to SARS every monthly.
But SARS did a proper audit and investigation and found that the invoices were not only false but that all the invoices, on which input VAT were claimed, were shared between three vendors.
SARS said in a statement: “SARS was able to confirm that the suspects did not run a business or purchase goods from suppliers, yet the refunds they had claimed were tantamount to purchases to the value of R823 million.”
The money that was claimed by the pair was used to pay bonds on the huge property portfolio held amongst them, luxury vehicles, overseas trips and private expenses. The accused face charges of contraventions of Tax and Customs Acts, as well as charges of theft, fraud, money laundering, forgery and uttering.
They will appear in court for a bail hearing soon.
