TaxAdministrationCarousal VAT fraud cases suspended

Carousal VAT fraud cases suspended

Customs & Excise has frozen up to 70 VAT fraud prosecutions after it was claimed the department withheld vital documents from defendants, claims the Financial Mail.

Link: Magic mushroom sellers tripped up by Customs

The cases relate to VAT frauds involving mobile phones and computer chips, the so-called ‘carousel fraud’ scams. The largest case involved a £162m loss to the British taxpayer, and it is believed that £2bn a year is lost in total to the scams.

The scams exploit a loophole in European Single Market rules where VAT is only paid on transactions inside EU countries, but not on trades between them.

Companies would import goods VAT-free from other EU states and then sell them on in Britain, charging VAT.

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

4d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

3w Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

3w Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

3m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

1y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

1y Fraser Simpson, Reporter