You are here: Home - Uncategorized -

Suspected fraudsters held in VAT raids

Written by:

HM Revenue and Customs (HMRC) has arrested 15 men suspected of being key players in a massive VAT fraud, often using business banking as a cover, following a series of dawn raids across Europe.

The arrests are part of a crackdown on ‘carousel fraud’, a tax evasion scam that is estimated to have cost the Treasury around £2.5bn in 2005-06.

HMRC confirmed that 300 of its officers had taken part in the raids which covered the UK, France, Spain and Germany. Over 50 search warrants were executed in the UK alone. Further arrests are expected.

Euan Stewart, HMRC’s deputy director of criminal investigations, said: “The scale of the problem across Europe is unprecedented and HMRC has significantly strengthened its response to this serious fraud, often taking cover under the guise of business banking.”

HMRC’s action is believed to be connected to the closure of a Caribbean bank alleged to have been a clearing house for laundering the proceeds of ‘Missing trader intra-community’ (MTIC) fraud.

The fraud involves importing goods from other EU countries into the UK, which are VAT-free under current European law. The importer then sells them on in a chain of fraudulent transactions then re-exports them, claiming back VAT which was not paid in the first place.

In its more sophisticated forms, the fraud, hard to detect under its cover of legitimate business banking, involves goods like mobile phones that are sent on a merry-go-round of trades through different countries – hence the description ‘carousel’.




Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Let them have free cash machines

Non-charging cash machines are to be placed in poorer areas of the country, so that less wealthy holders of UK current...