Lords call for radical changes to VAT system
Changes need to stop carousel fraud
House of Lords EU Select Committee has called for fundamental changes to the
VAT system in Europe to prevent carousel fraud.
It also said in a new report that new HM
Revenue & Customs rules covering VAT on mobile phones were no more than
a sticking plaster.
Furthermore, the Lords said HMRC efforts to clamp down on fraud needed huge
amounts of resources and may harm some innocent traders.
fraud has cost the government billions of pounds in recent years and Revenue
& Customs last year doubled its team of invesigators to 1,500.