RegulationCorporate GovernanceHMRC beats new form of VAT fraud

HMRC beats new form of VAT fraud

HMRC puts up fight against latest form of carousel fraud

A new form of carousel fraud has been successfully countered by HM Revenue
& Customs.

Three companies, Just Fabulous, Evolution Expert Trading and Brayfal fought
HMRC in the High Court, arguing they were able to reclaim VAT.

They said they could not have known they were operating in a new type of
carousel fraud known as contra trading.

Under contra trading , carousels are linked across borders to offset losses
in one country against another, making it more difficult to track where tax has
been unpaid.

HMRC
won the case, the courts deciding that although a new type of carousel
fraud, still fell under the Kittel ruling, reported
The
Guardian
. Under Kittel, companies are denied VAT reclaims
where they should have known that VAT fraud was taking place at some point in
the chain.

Further reading:

Interest boost to VAT reclaims

Are you a spivvy
boutique

Minister hails ‘massive’ carousel fraud
drop

Related Articles

Corporate governance: staying ahead in accountancy

Corporate Governance Corporate governance: staying ahead in accountancy

2w Alia Shoaib, Reporter
One in 20 audit firms quit as market evolves

Audit One in 20 audit firms quit as market evolves

1y Kevin Reed, Writer
Colin: #EURef bankers a problem

Business Regulation Colin: #EURef bankers a problem

1y Taking Stock
Best Practice: Saffery Champness managing partner Rob Elliott

Accounting Firms Best Practice: Saffery Champness managing partner Rob Elliott

1y Calum Fuller, Reporter
Standard Life Investments opposes EY's appointment as Shell auditors at AGM

Accounting Firms Standard Life Investments opposes EY's appointment as Shell auditors at AGM

1y Richard Crump, Writer
PwC and Deloitte chiefs sign Remain letter

Business Regulation PwC and Deloitte chiefs sign Remain letter

1y Kevin Reed, Writer
Leader: Audit competition drives change, not necessarily quality

Accounting Firms Leader: Audit competition drives change, not necessarily quality

1y Kevin Reed, Writer
EU audit reform to open up £10bn market for firms

Accounting Firms EU audit reform to open up £10bn market for firms

1y Richard Crump, Writer