VAT fraud

Janes Solicitors have significant experience in all types of alleged Value Added Tax (VAT) fraud, including ‘carousel fraud’ (MTIC fraud), and provide robust representation and advice for those under investigation or facing prosecution for alleged involvement in VAT frauds. Get in touch as soon as possible if you are under investigation or if you are facing tax fraud allegations

Carousel fraud - Missing Trader Intra Community Fraud (MTIC)

In ‘carousel frauds’, imported goods may be sold from one trader to another, and eventually exported. The exporter can claim back the whole of the VAT from the Government that should have been paid on the goods. However, if there is a “missing trader” in the chain of sales, part of this VAT was never paid in the first place and this can repeat many times, with the goods going round in a ‘carousel’.

An example of MTIC fraud is when goods are zero-rated in the country of origin, and VAT on the goods should be paid in the country where they have been imported. After importation, the goods are sold to another trader charging the price of the goods plus VAT. The trader doesn’t pass on the VAT to the Government. This trader becomes a “missing trader”. The buyer who paid VAT to the missing trader claims a deduction for the same VAT amount on his VAT return. The same goods will then be shipped on again at zero-rated VAT for export meaning the Government has lost the entire VAT that should be paid on the goods. This type of fraud, where goods are made available for consumers in the importer’s home market is often known as ‘acquisition fraud’.

Other VAT frauds

Janes Solicitors have also experience of acting in cases where it has been alleged that VAT fraud has been committed by way of false accounting (such as ‘double-invoicing’) and the wilful failure of a business to properly account for VAT to HMRC such as by an employment agency providing staff to a third party.

Contact one of our expert VAT fraud solicitors

Janes Solicitors provides bespoke specialist advice on all areas of serious and complex fraud, regulatory, taxation and serious financial crime matters. With extensive experience in all areas of fraud and financial crime and a well-earned reputation as leaders in our field, our expert defence team take a proactive and pragmatic approach to legal advice and case strategy. We are committed to your successful outcome. Janes Solicitors pride ourselves on our case tailored approach for each client in and our fearless commitment in each and every case we undertake.

If you or your business have concerns, are under suspicion or investigation or have been arrested or prosecuted for any serious fraud or financial crime offence, contact us today. We are there when you need us.

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