Pretoria, 07 May 2010 - South African Revenue Service (SARS) enforcement officials along with the South African Police Service (SAPS) yesterday arrested two individuals in Randburg for their involvement in VAT fraud amounting to R189m.

The two individuals were arrested during a search and seizure operation that was carried out on two business premises in Randburg. False SARS stamps and documents were found on the premises. Further search and seizure activities were carried out on residential properties in Parktown North and Morningside linked to the operation.

One of the suspects is a director of several companies which were used to defraud SARS, while the other is an accountant employed by the businesses. The companies had received payouts of R146m and the remaining R43m which would have been due to them will now not be paid out by SARS.

SARS together with other law enforcement agencies are currently in search of a further suspect believed to key to the fraudulent activities.

We continue to encourage members of the public to contact the SARS Fraud and Anti Corruption hotline on 0800 00 28 70 to report any suspicious business activity that appears unlawful

Statement issued by the South African Revenue Service, May 7 2010

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