Missing trader fraud (also called Missing Trader Intra-Community, MTIC, or carousel fraud) is the theft of Value Added Tax (VAT) from a government by organised crime gangs who exploit the way VAT is treated within multi-jurisdictional trading where the movement of goods between jurisdictions is VAT-free. This allows the fraudster (person who commits fraud) to charge VAT on the sale of goods, and then instead of paying this over to the government’s collection authority, simply absconds, taking the VAT with him. The term “missing trader” refers to the fact that the trader goes missing with the VAT. “Carousel” refers to a more complex type of fraud in which VAT and goods are passed around between companies and jurisdictions, similar to how a carousel goes round and round. In the UK the fraud is investigated by HM Revenue & Customs and prosecuted by the Crown Prosecution Service and the Crown Office and Procurator Fiscal Service.

Further convictions in £17m missing trader fraud

Further convictions have been secured by HMRC against an organised crime gang who conspired to steal £17m of taxpayer’s money in a ‘missing trader’ VAT fraud. Criminal investigators from HM Revenue & Customs (HMRC) investigated the multi million pound fraud, centred on the mobile phone industry, in an investigation beginning in 2006. VAT reclaims were …

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Knew or should have known… A review of MTIC or Carousel fraud cases

The English Courts and Tribunals have held that the right of a taxable person to deduct input VAT in respect of certain transactions cannot be affected by the fact that, in the chain of supply of which those transactions form part, without that taxable person knowing or having any means of knowing, another prior or …

Knew or should have known… A review of MTIC or Carousel fraud cases Read More »

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