TaxCorporate TaxCarousel fraud could hit £7bn

Carousel fraud could hit £7bn

Estimates of potential hit increase to £7bn as problem threatens to overwhelm HMRC

Losses from carousel fraud could be as high as £7bn a year, according to new
estimates of the problem.

A report by the civil servants union the Public and Commercial Services’
Union, covered in The Observer this weekend, suggests there is widespread
concern in Whitehall about the issue.

The fraudulent activity, which involves charging for and then pocketing VAT
on high tech portable goods within the EU, has risen by 500% over the last
twelve months, the paper says.

The Treasury has reportedly doubled the number of staff tackling the problem,
the paper reports, and adds that Sir David Varney the head of HMRC has been
encountering management problems amidst plummeting morale at the tax body.

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