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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 $10 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.