R&C target million-pound VAT fraud

17 Aug 06
Revenue & Customs has launched its biggest counter-fraud operation to date in an effort to halt a multimillion pound VAT fraud.

18 August 2006

Revenue & Customs has launched its biggest counter-fraud operation to date in an effort to halt a multimillion pound VAT fraud.

Customs officers working with police made 22 arrests on August 15 in a series of raids across the UK against gangs operating so-called 'carousel' frauds.

These involve the rapid and repeated transfer of goods such as mobile phones across European Union borders with the aim of reclaiming VAT at each stage.

Gordon Miller, deputy director of investigations at Revenue & Customs, said: 'This operation is part of a large-scale international investigation into frauds that may run to hundreds of millions of pounds.'

Fifteen of the arrests took place in Glasgow, from where the investigation is being co-ordinated,

The fraud is said to be distorting Britain's trade figures, which are based on VAT returns. Up to 10% of UK exports are thought to be related to carousel fraud.

EU tax commissioner Laszlo Kovacs has estimated that EU governments may be losing €50bn a year in revenue.

PFaug2006

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