The UK tax authority, HM Revenue and Customs (HMRC), announced on the morning of August 10 that it had arrested five individuals suspected of a multi-million value-added tax (VAT) 'carousel' and money laundering fraud targeting the caravan and motor home industry.
During the operation codenamed Quicksilver, officers from HMRC searched nine premises – seven domestic and two commercial - and arrested the men, four from Staffordshire and one from Greater Manchester.
Gary Lampon, Assistant Director of Criminal Investigation for HMRC, commented of the investigation: "Tackling VAT fraud is one of our top priorities. Today's raids are the result of a lengthy investigation and those arrested are being taken to police stations in Staffordshire and Greater Manchester for questioning by our investigators.”
HMRC believe the men to be part of an organized crime syndicate purporting to trade in large quantities of high value caravan accessories in a version of carousel fraud.
Carousel fraud, or Missing Trader Intra Community (MTIC) fraud to give it its official name, arises where VAT standard-rated goods or services are effectively traded VAT free between EU member states. This is because the VAT is due in the country in which the customer belongs, meaning that the VAT can be accounted for and simultaneously reclaimed by the customer. The customer then has the opportunity to charge VAT on its onward domestic supply and disappear without accounting for the VAT due. This process is often repeated several times by the same criminal gang.
Carousel fraud is traditionally organized with small goods of high value. Carousel fraud also occurs on intangible items such as greenhouse gas emission allowances, although the majority of European nations that are party to the EU emission trading system have now introduced reverse charge mechanisms to address this issue.
During the operation codenamed Quicksilver, officers from HMRC searched nine premises – seven domestic and two commercial - and arrested the men, four from Staffordshire and one from Greater Manchester.
Gary Lampon, Assistant Director of Criminal Investigation for HMRC, commented of the investigation: "Tackling VAT fraud is one of our top priorities. Today's raids are the result of a lengthy investigation and those arrested are being taken to police stations in Staffordshire and Greater Manchester for questioning by our investigators.”
HMRC believe the men to be part of an organized crime syndicate purporting to trade in large quantities of high value caravan accessories in a version of carousel fraud.
Carousel fraud, or Missing Trader Intra Community (MTIC) fraud to give it its official name, arises where VAT standard-rated goods or services are effectively traded VAT free between EU member states. This is because the VAT is due in the country in which the customer belongs, meaning that the VAT can be accounted for and simultaneously reclaimed by the customer. The customer then has the opportunity to charge VAT on its onward domestic supply and disappear without accounting for the VAT due. This process is often repeated several times by the same criminal gang.
Carousel fraud is traditionally organized with small goods of high value. Carousel fraud also occurs on intangible items such as greenhouse gas emission allowances, although the majority of European nations that are party to the EU emission trading system have now introduced reverse charge mechanisms to address this issue.
