New kind of Fraud going on

[Celine]

I need to bring this to everyone's attention and please could you take note and pass this along to as many people as possible in case this might happen to anyone of you or someone you may know.

This is happening in the payroll division of the business. It would seem that if it is a smaller business the payroll will be done by someone other than within the business itself.

What is happening is if an employee leaves the business/company, the person doing the payroll will keep this ex employee on the payroll and money will be paid to this ex employee. When it comes time for the IRP 5 certificate to be issued, the only information on the certificate that is reflected is the ID number and the name of the person. This fraudulent IRP 5 certificate will give the unsuspecting taxpayer a debt to SARS. In the meantime the person handling the payroll has pocketed the money and the business owner is unaware of this because he is so trusting of his bookkeeper.

This is the 3rd case I have dealt with and I can immediately tell that there is fraudulent activity going on with the taxpayer. SARS will not do anything because the certificate is reflecting on the unsuspecting persons returns.

People I need you to be aware of anything untoward on your assessments like this and investigate immediately as well as open fraud cases against the payroll division.

Thanks for taking the time to read this.

 

[Batista]

Thanks Celine, it'll be a bit hard for the fired person to keep track of this though.

 

[maumau]

tks Celine

 

[Nerfherder]

Thanks Celine, it'll be a bit hard for the fired person to keep track of this though.

You should always get an IRP5, even if you get fired.

If the company can't give you one then you have to tell SARS.

 

[envo]

Not really anything new. We had a couple of payroll ladies do the same thing, they were charged criminally and the one is serving 15 years now.

The only advice I can offer a business owner is to do audits more often so that irregularities like that pop up more frequently. You are right, people are too trusting, and unfortunately the people comitting this crime is often aware that they can get away with it for a long period of time and "won't get caught"

 

[Sly21C]

Thanks for the advice Celine. I'm leaving my current employer at the end of this week actually, so would you suggest I request my IRP5 form now to avoid being a victim?

 

[krono9]

Have had a few similar cases at out audit firm... it's also good to run the master file to excel now and then and check for duplicate bank account numbers for multiple employees. Some companies will keep terminated employees on the payroll that are below the tax threshold...and therefore dont pick up as outstanding on PAYE etc..... UIF,SDL is easily overridden as wel to hide this.