Guatemala arrests businessmen in tax corruption scheme

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Guatemala arrests businessmen in tax corruption scheme
Ingmar Walterio Iten Rodriguez, a Guatemalan businessman, is transferred in handcuffs through the basement of a courthouse after his arrest in Guatemala City, Thursday, Jan. 25, 2018. Iten Walterio is one of several Guatemalan businessmen and former government officials arrested on charges of corruption and tax evasion. (AP Photo/Luis Soto)

GUATEMALA CITY (AP) — Guatemalan prosecutors have announced the arrest of several business executives and former government officials implicated in a fraudulent tax-refund scandal.

The special prosecutor against corruption says those arrested include a former top official of the country’s tax collection agency.

Prosecutor Juan Francisco Sandoval alleged Thursday that the official charged commissions to provide tax refunds for seven businessmen who are also suspects.

The arrests are connected to a scheme that netted business executives about million in illegal tax refunds.

In much of Latin America, businesses often seek repayment of large amounts of value-added and other taxes, often for transactions that were never carried out.