South African Revenue Service (SARS) and the Special Investigating Unit (SIU)
on income tax scam syndicate
13 June 2007
In a joint operation conducted early this morning, investigators from the
Directorate of Special Operations (the Scorpions) arrested a number of members
of an organised crime syndicate on charges of fraud and money laundering.
The arrests are the result of a large-scale joint investigation between the
South African Revenue Service, the Scorpions and the Special Investigating
Unit.
The charges relate to an alleged Income Tax scam in which syndicate members
exploited vulnerable unemployed people's identities to commit tax fraud. Among
the arrested individuals is a SARS official as well as a former SARS official,
believed to be one of the leaders of the syndicate.
Some time ago SARS, with assistance from the SIU, initiated a large-scale
forensic investigation into significant losses relating to tax refunds. When it
became clear that an organised crime syndicate was involved, the DSO was
requested to investigate alleged fraud and money laundering as contemplated in
the Prevention of Organised Crime Act as well as contraventions of Section 104
of the Income Tax Act.
SARS will continue to co-operate with all law enforcement agencies to act
decisively against any form of corruption inside its ranks or by external
parties involved in criminal acts at the expense of the fiscus or honest
taxpayers.
By targeting the unemployed who were not registered for tax, the suspects
callously preyed on poor, vulnerable, unemployed people.
The arrested persons will appear in court in the Pretoria Magistrates court
tomorrow morning, 14 June 2007, on charges of fraud and money laundering. This
is an ongoing investigation and more arrests will follow.
Enquiries:
South African Revenue Service
Adrian Lackay
Tel: 012 422 4206
Cell: 083 388 2580
Directorate of Special Operations
Lucinda Moonieya
Tel: 012 845 6123
Cell: 082 926 7738
Special Investigating Unit
Trinesha Naidoo
Tel: 012 843 0028
Cell: 084 400 6721
Issued by: National Prosecuting Authority
13 June 2007
