TWO people from a Monmouthshire village were arrested by police investigating an alleged multimillion pound international fraud case.

A man and woman, aged 56 and 60, were arrested on Tuesday from their home in Shirenewton as part of an investigation into a suspected £4 million tax fraud.

Officers from HM Revenue and Customs searched the house, which is also used for business, as part of searches at homes and businesses across the UK.

They took business records and computer evidence from the village home, as well as a business and house in Chepstow, a home in Llandaff, Cardiff, and two homes and a business in Northampton.

There was also a search of a property, used as a home and business, in Drenthe, Havelte, in Holland, but no arrests were made there.

A total of six people were arrested.

A 65-year-old man and 47-year-old woman were arrested in Cardiff and two men, aged 66 and 41, were arrested in Northampton.

The alleged offences include income tax, VAT and corporation tax evasion, construction industry fraud and money laundering.

All six were questioned and bailed. The Shirenewton woman must answer bail on December 16 and the man was bailed until February 3, 2010.

Assistant director of criminal investigation at HMRC, Andrew Pavlinic, said: "We take very seriously our investigations into tax evasion, fraud, and the eventual laundering of the profits of these crimes. Those involved in this type of activity give themselves an advantage over those businesses that play by the rules and that simply isn't fair."

Investigations are ongoing and anyone with information about tax fraud is asked to call the HMRC hotline on 0800 595 000.