Tax Alert issued by PriceWaterhouseCoopers, August 4 2010 (see here):
White collar criminals targeting taxpayers via CIPRO and SARS
It has come to our attention that unauthorised amendments have been made to companies' records at the Companies and Intellectual Properties Registration Office (CIPRO). The amendments relate to the purported resignation of directors and their replacement with new directors. The change in directors is recorded on a form CM29 authenticated by CIPRO.
The "new" directors then use the form CM 29 to open "new" bank account in the name of the affected company and notify SARS of the change to the banking details. Refunds payable by SARS are then paid into the "new" bank account. The scheme has been extended to VAT refunds as well.
Frauds of this nature are difficult to detect as they occur without the company being aware of their commission.
However, they arise in the case of companies that are due to receive refunds from SARS.