The government will not hesitate to bring forward new legislation to tackle
carousel fraud, paymaster general Dawn Primarolo said today as the government
broadly accepted the Bond House verdict.
The European Court of Justice ruled today in favour of the three businesses
at the centre of the joined case, named after one of them, Bond House.
The government had tried to deny VAT to businesses at the end of the
fraudulent VAT chains, on the basis that they were involved in ‘non-economic’
activity by virtue of fraudulent steps in the chain of sales. The court ruled
Primarolo said: ‘The UK notes the Court’s decision and will of course follow
the guidance it has given. HMRC will now consider the detail of the ruling in
order to determine the extent to which it applies to their previous decisions.
‘Missing trader fraud is an EU-wide organised criminal attack on the VAT
system. It cost the UK over £1bn in 2004-05. The government and HMRC are
determined to tackle this fraud, and the criminals perpetrating it.
‘Steps have already been taken to strengthen HMRC’s strategy to tackle MTIC
fraud, and they will continue to take further measures as appropriate, in order
to protect the revenues needed to provide essential public services. The
government will not hesitate to bring forward further legislation if this is
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The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states