The SA Revenue Service says it has uncovered VAT fraud to the tune of 266.2 million rand.
SARS spokesperson, Luther Lebelo, said in a statement that the fraudulent claim had been made earlier this year by a group of individuals representing a registered company in South Africa.
He said the company had claimed to have made these payments to their employees and were claiming the money back as VAT refunds.
Lebelo said the group was arrested on Wednesday at the SARS head office on a charge of fraud.
He says two people were identified as the alleged masterminds.
One is a Cape Town businessman and the other an unregistered tax practitioner - apparently a former SARS employee.
