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Interpol alerted for VAT mafia
By Asif Fuard
Two top tax officers and three other suspects have been arrested over the biggest ever tax fraud but the alleged godfathers of this VAT mafia have fled the country and Interpol is hunting for them.

CID detectives said the latest to be arrested was Mohamed Ashraff, brother-in-law of, M. Murshid who is alleged to be one of the kingpins of this multi-billion-rupee racket and made so much from it that he invested in a 200-room luxury hotel in Dubai.

Detectives said Mr. Ashraff was arrested while he was trying to get away from his Colombo 7 residence in an apparent bid to flee to Singapore where he has huge investments.

The detectives said Mr. Ashraff had been evading arrest but they swooped into his residence on Friday night when his bags were packed and he was ready to go. Mr. Ashraff who owns a chemical import business and a money exchange in Pettah is alleged to have worked out a network to heavily bribe customs officers in the huge VAT fraud.The detectives said they were making more startling discoveries and might even have to question the new Commissioner General A. A. Wijeyapala over concessions given to a company in Panadura.

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