Crackdown on VAT fraud continues

HMRC’s crackdown on VAT fraud continues with the detention of a businessman from Fife in relation to a suspected £500,000 VAT repayment fraud. 

HMRC officers searched one domestic and two business premises in Fife last week, where they seized business records relating to the suspected fraud. The operation is linked to the taskforce looking at fraudulent VAT repayment claims that was launched in Scotland last month.

The HMRC taskforces bring together various HMRC compliance and enforcement teams for intensive bursts of activity targeted at specific sectors and locations where there is evidence of high risk tax evasion and fraud.

Taskforces are seen to be an important tool in tackling the increasing problem of tax fraud in general and VAT fraud in particular. A report by accountants BDO LLP suggests that tax fraud now accounts for 44% of all fraudulent activity reported in the UK, with VAT fraud in particular accounting for as much as 41% of the total UK fraud figure.

Since 2011 HMRC has launched 54 taskforces and plans an additional 16 for 2013-14.

The man was questioned by HMRC and then released pending further investigation.

Criminal defence and legal advice in Scotland

If you have been charged with VAT fraud and require specialist legal advice, please contact our criminal defence solicitors based in Glasgow today.