TaxCorporate TaxVAT changes ‘will hurt carousel fraud fight’

VAT changes 'will hurt carousel fraud fight'

Planned changes to UK VAT system will undermine carousel fraud fight, say IVA


Gordon Brown
has been warned that proposals to simplify
the VAT system will undermine efforts to fight multibillion-pound carousel
fraud.

According to the International
VAT Association
(IVA), Brussels is considering proposals to allow
an increased range of business services to be traded across borders, which would
increase the risk of carousel fraud,
the FT
reports.

In a letter to Brown, the IVA said that proceeding with the proposal would
‘undermine Europe’s fight against VAT fraud and could further exacerbate the
significant deficts which already exist in certain member states’.

VAT fraud is estimated to cost the EU up to £41bn annually.

Further reading:

Lords call for radical changes to VAT system

Legitimate businesses affected by VAT crackdown

New VAT rules to curb carousel fraud set for June

Related Articles

Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

2m Alia Shoaib, Reporter
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
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

2m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

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

3m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

3m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

3m Austin Clark, Reporter
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

3m Emma Smith, Managing Editor
Should I incorporate my buy-to-let business?

Corporate Tax Should I incorporate my buy-to-let business?

4m Emma Rawson