- VAT fraud in South Africa is increasing, particularly affecting the agricultural sector and costing the country at least R1 billion in lost tax revenue.
- A group of 11 agricultural companies, The Concerned Trading Group (TCTG), claims VAT fraudsters use illegal refunds and artificially low prices to undermine fair competition.
- The alleged syndicate has reportedly operated for nearly a decade, targeting both basic and more expensive goods, resulting in billions in lost turnover for legitimate businesses.
- The fraud involves complex schemes like inter-company invoicing and mixing diesel with paraffin, which also raises costs for the industry.
- Tax experts warn that unchecked VAT fraud could severely damage the legitimate economy, likening it to an “economic cancer.”
Source: africanfarming.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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