Formally called Missing Trader Intra Community (MTIC) VAT Fraud, Carousel Fraud can be a complex to understand due to the financial technicalities, speed and scale at which a Carousel Fraud offence is conducted.
A diluted form of Carousel Fraud is acquisition fraud which takes place when a product is imported VAT free from abroad and then sold on to someone in the UK with VAT. The VAT owed to the government is then not paid with the seller usually disappearing.
Carousel Fraud is estimated to cost up to £14 billion per annum
Carousel Fraud occurs as a more complex form of Acquisition Fraud and involves goods being imported VAT free and then traded through a string of companies, each one liable to VAT. At the end of the chain the product is exported again. In this type of fraud the first part of the string often goes missing without paying VAT charged to the purchaser and the final part of the chain claims VAT back from the government before also disappearing.
Despite convictions often being difficult any form of tax fraud is taken extremely seriously be the authorities undoubtedly due to the often vast sums of money being lost by HRMC – estimated at 14 billion a year.
If you are being investigated or facing for Carousel / MTIC Fraud offences it is imperative to seek legal advice from experienced Carousel Fraud Solicitor at the earliest opportunity.