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’.



Related Posts


Tag Box

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

  • RT @procopywriters: Self-employed workers lose an annual average of twenty days chasing unpaid invoices. As the growth of the #freelance la…
  • RT @procopywriters: Self-employed workers lose an annual average of twenty days chasing unpaid invoices. As the growth of the #freelance la…
  • Self-employed workers lose an annual average of twenty days chasing unpaid invoices. As the growth of the…

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...