Photo by: Bloomberg
JOHANNESBURG (miningweekly.com) – Two men have been arrested by the Hawks for their alleged involvement in an illicit gold industry syndicate in Nigel, Gauteng, following an investigation by the South African Revenue Service’s (Sars’) Enforcement Division.
The suspects, who were arrested on Friday, were granted bail of R50 000 each on Monday.
They face charges of fraud and other tax offences. Their case was postponed until November 3 for further investigation.
The syndicate allegedly fabricated fraudulent documentation reflecting purchases of second-hand jewellery amounting to R5-million. The fictitious purchases were used in claiming a fraudulent 14% notional value-added tax (VAT) input between 2011 and 2013.
Sars said it had suffered an actual prejudice in excess of R5-million owing to the scheme.
The syndicate followed a similar modus operandi to the Bezuidenhout group, a crime syndicate that was alleged to have fabricated over 16 000 fraudulent invoices worth about R437-million to reflect purchases of second-hand gold jewellery, earlier this year.
In that case, the fictitious purchases were used in claiming a fraudulent 14% national VAT input between 2010 and 2012, as well as understating their sales during the same period.
The case against the five members of the Bezuidenhout group had been postponed to October 30 for further investigation.