The taxman has swooped to arrest six people in Scotland to smash a suspected £20m carousel fraud chain.

The arrests followed a 24-month investigation by HM Revenue & Customs codenamed Operation Vaulter, which included 17 arrests last September.

Carousel fraud, also known as MTIC fraud, has been a major problem for the taxman. Small high-value goods such as mobile phones are bought VAT-free then sold on without paying the VAT, with the company going missing.

'[The] arrests are the result of a lengthy investigation by dedicated officers who work tirelessly and diligently, fighting criminal attacks on the tax system,' said Chris Harrison, director of operations, criminal investigations at HMRC.

Further reading:

VAT fraud is out of control, House of Lords claims