Carousel fraud discovered in gas and powers sector
Carousel fraudsters move carbon into energy
A carousel or missing trader fraud is reported to have been uncovered for the
first time the gas and power sector.
According to the
Telegraph, the fraud, which involves the theft of VAT, has prompted
HMRC to warn energy traders at investment banks to be on the alert for
Carousel fraud involves involving the importing VAT-free of goods from the
continent, trading computer components, then selling them on with a VAT charge.
The seller then disappears without paying the VAT to the taxman.
In the last the government abolished VAT in carbon trading to head off the
risk of fraud.