Tax fraud makes up nearly half of all frauds in Britain.
Dishonestly withholding the money owed to a government in Value Added Tax (VAT) is one of the most lucrative forms of fraud today.
There are many types of VAT frauds. An example of VAT fraud is a carousel fraud, also known as Missing Trade Intra-Community (MTIC fraud). Another description for this type of fraud is a missing trader fraud.
These sophisticated and complex frauds are conducted by organised crime groups around the world who use high value goods including electronic goods or gas/precious metals to perpetrate the fraud. Illegitimate companies and fake individuals are usually used to make detention difficult for investigators.
VAT is levied on goods and services in business. However, under EU tax regulations, a VAT registered business from an EU member state does not have to pay VAT if it sells goods or supplies services to another VAT registered business in a different EU member state.
Fraudsters usually control different EU companies within a chain.
Let’s say a VAT registered company (Company A) from France sells goods to a U.K VAT registered Company (Company B).
Company B acquires the goods VAT free due to the EU tax regulations.
Company B then sells the goods within the U.K to a VAT company (Company C) charging them the VAT.
Company B should account to HMRC for the VAT it receives from Company C but disappears. This company is the missing trader.
Company C sells the goods and charges VAT to a company registered for VAT again within the U.K (Company D).
Company C reclaims the VAT it has paid.
Company D sells the goods to Company E which is VAT registered and situated in a different EU member state and reclaims the VAT it has paid.
Company E sells the goods back to the U.K and starts the cycle again to another missing trader. Hence the phrase ‘carousel fraud’.
A company (or sole trader) must declare its income to the authorities so that it can meet its tax obligations. A company may mistakenly or otherwise declare a lower figure than its actual takings. The authorities will thus calculate the VAT owed based on a lower figure, while the company keeps the difference.
Businesses which operate in cash are vulnerable to accusations of under-declaration. It is much more difficult to trace and verify cash transactions than digital transactions. As such, innocent businesspeople can find themselves under investigation for VAT evasion.
Activity which can arouse the suspicion of the authorities include:
If the authorities suspect a breach in VAT regulations, an investigation can quickly become a criminal prosecution.
If you are arrested for this offence, you will be taken to a police station for the purpose of being interviewed under caution. Among other rights you have the right to be represented at this interview by a solicitor free of charge. This is usually a duty solicitor nominated by the police. You also have however the right to nominate a solicitor of your choice. The solicitor will be able to obtain some information from the investigators about why you have been arrested and will be able to discuss this with you and provide you with advice prior to the interview.
ABV Solicitors have expert VAT fraud specialist solicitors able to attend the police station on short notice nationwide.
Upon receipt of such a letter it is critical that you seek the assistance of a solicitor immediately. ABV Solicitors will allocate a specialist VAT fraud solicitor for you and make arrangements on your behalf to liaise with the investigators and facilitate an interview at your convenience.
This will allow sufficient time for you to arrange a face-to-face meeting with a specialist solicitor in advance of any interview so you can be advised and fully prepared on what to expect.
We are here to fully support you and those concerned during this difficult time. Obtaining immediate legal advice can make all the difference to the outcome of the investigation.
This can be an extremely stressful time for you, your family and your business.
You may have already been interviewed and released on bail or released under investigation. You may have not used a solicitor at all during your interview or are not confident with the solicitor who represented you and are in need of a specialist solicitor with experience in this area.
Whatever the situation, ABV Solicitors have a dedicated team of experts who are experienced in this field and who are able to provide you with sound advice and assistance.
If you have been charged with VAT fraud you must seek the assistance of a defence specialist immediately. ABV Solicitors have a dedicated Fraud and Financial Crime department consisting of experienced solicitors who are specialist in this field.
ABV Solicitors can provide immediate advice and assistance and assist you, and your business during this stressful time.
Law enforcement agencies such as the police, HMRC, FCA or SFO often use ancillary powers in addition to making arrests and search warrants. These include applying for Restraint Orders or Account Freezing Orders under the Proceeds of Crime Act 2002.
The purpose of this is to prevent those under suspicion to dissipate assets which may have been acquired through the commission of committing offences.
These Orders are draconian and can cause severe disruption to the lives of individuals and those connected to them including their businesses.
ABV Solicitors have a dedicated team of experts within their Fraud and Financial Crime Department who specialise in tackling these Orders.
If any of the above circumstances apply to you or someone you know contact ABV Solicitors Fraud and Financial Crime Department immediately on 0344 587 9996 or visit our website at www.abvsolicitors.co.uk
ABV Solicitors are available 24/7 and offer their professional expertise and assistance nationwide.
03445879996
EMAIL US