|
|
04 Dec 2006
VAT ‘carousel’ fraud will cost the cost the government at least £5bn this year, according to a study by mid-tier firm Grant Thornton.
The firm made what it called a ‘conservative’ estimate based on official data showing sharp falls in the fraudulent activity in the past couple of months.
Grant Thornton said the estimate of £5bn was likely to be reached even if the final quarter of this year sees a substantial decrease in the scale of fraud.
‘The economic impact of [carousel] fraud continues to have a significant negative impact on the UK economy,’ said Stephen Gifford, the firm's chief economist.
‘Even on a conservative estimate we forecast losses to HM Treasury will amount to £5bn in 2006. That represents around one penny on the basic rate of income tax,’ he added.
Further reading:
French scupper UK's anti-carousel fraud efforts
You may also like
Search thousands of financial jobs:
Search thousands of financial jobs:
Careers
Search for jobs
Click to search our database of all the latest accountancy roles
Create a profile
Click to set up your profile and let the best recruiters find you
Jobs by email
Sign up to receive regular updates with the latest roles suitable for you
Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment