News: SARS catches out yet another tax syndicate
On Friday 9th October, the South African Police Service's top crime-fighting unit, the Hawks, arrested two men after an investigation by the South African Revenue Service (SARS) revealed a tax scam amounting to R50 million.
According to SARS spokesperson, Luther Lubelo, 'the syndicate allegedly fabricated fraudulent documentation reflecting purchases of second-hand jewellery amounting to R50 million.'
'The fictitious purchases were used in claiming a fraudulent 14 percent notional VAT input over the period of 2011 to 2013. SARS suffered an actual prejudice in excess of R5 million due to this scheme.'
Notional input tax can be confusing.
And if you don't claim, you'll lose out on your input tax saving. But if you do claim without the required documents.. SARS will slap you with nasty fines and penalties.
To make sure you're compliant with all of SARS' Vat rules, I recommend the Practical Vat Loose Leaf
. It will give you all the information you need to ensure you meet not just your notional input tax obligations but all your Vat obligations too.
The case against the two men has been set aside to 3rd
November for further investigation.
As reported on Business Report,
the recent arrest made under the careful watch of SARS was similar in nature to the Bezuidenhout group scheme which was uncovered by SARS earlier this year.
This syndicate reportedly fabricated over 16 000 fraudulent invoices, totalling over R400 million, to reflect purchases of second-hand gold jewellery – payments which were 'made' using a fraudulent 14% notional VAT input over the period of 2010 to 2012. It also understated its sales drastically.
At the end of the day, SARS is
keeping a close eye on all your activities. So click here
to ensure you play things by the book.
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