Zimbabwean pair in $0.5m US tax fraud quiz

Zimbabwean pair in $0.5m US tax fraud quiz

GOVEREH: Arrested

MUTEKE: Claims he fired Govereh and owns company

THE OFFICE

By Staff Reporter

TWO Zimbabwean men face a fraud quiz over an alleged attempt to skim the United States government of half-a-million dollars through the one-time telephone excise tax refund facility.

Tauya Muteke, described as the company president for the Atlanta-based Icon Tax Services is accused of preparing fraudulent tax returns, a report on the local CBS46 News TV station said Wednesday.

Onessimus Govereh, another Zimbabwean and employee at the company was arrested last week over the alleged scam.

Govereh has an extensive criminal record including driving with a suspended driver's licence, possession of dangerous drugs, forgery, counterfeiting, larceny, failure to appear for felony offence and driving under the influence.

Now authorities say they have discovered that he is also an illegal immigrant.

It is alleged that Icon Tax Services inflated claims and promised customers thousands of dollars in tax refunds, when they were only entitled to a fraction of the amounts claimed.

The Internal Revenue Service (IRS) will give one-time telephone excise tax refund this year for people who used telephone services between March 2003 and July 2006. Refunds range from $30 to $60.

Authorities say Icon Tax Services claims averaged $4 300 per client.

A spokeswoman for the IRS said: "What I can tell you is that we have an open criminal investigation for Onessimus and Icon Tax Services. I can tell you that last week we served search warrants at his business."

In an interview with CBS, Muteke insisted that he was the boss and had "fired" Govereh, whom he kept referring to as "Tony".

"He's not here (Govereh)," said Muteke when a CBS news crew confronted him in his office. "Tony is in jail right now."

He insisted that the company was co-operating with authorities.

"That's why I am here, to figure out all of this, we are working with the IRS," he said.

In an analysis of early tax returns this week, the IRS said this year's top tax scam involves people who try to take inflated refunds for the one-time telephone excise tax refund.

Most tax filers are using an IRS table that allows them to claim a refund ranging from $30 to $60 depending on their number of personal exemptions.

But some tax returns are setting off alarm bells at the IRS.
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