Police have detected a new racket where some people were apprehended for allegedly setting up bogus companies and claiming VAT returns from the Fiji Islands Revenue and Customs Authority.

So far three people have been charged in relation to the alleged offence while others have been identified and will be arrested soon.

It is alleged that those arrested claimed thousands of dollars from FIRCA in VAT returns. Some people were given cheques while other applications were being processed when the alleged racket was uncovered.