Carousel fraud bill to reach £5bn
Grant Thornton estimates massive cost of VAT fraud
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
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.