carousel fraud


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carousel fraud

n
(Commerce) the practice of importing goods from a country where they are not subject to VAT, selling them with VAT added, then deliberately not paying the VAT to the government
References in periodicals archive ?
Sarwar, 28, the son of MP Mohammad, was jailed for three years this month for laundering pounds 840,000 from carousel fraud through his United Wholesale grocery firm in Pollokshields, Glasgow.
The case concerned three British exporters of microprocessors which, in 2002, unwittingly became party to carousel fraud.
Miguel Poiares Maduro said this would "drastically shift the burden" of detecting carousel fraud from tax authorities to companies, "at the expense of legitimate trade".
Iqbal was arrested last year and questioned in relation to a wide-ranging pounds 500million international carousel fraud but was released without charge.
The increase has been attributed to an explosion in so-called carousel fraud where criminals charge retailers VAT on imported items but do not hand the tax to Her Majesty's Revenue and Customs.
Diginett and its three employees - Iftakar "Ifti" Iqbal, Zanid Munir and Ning Zhu - remain at the centre of Customs' probe into a pounds 500million worldwide carousel fraud.
PARTICIPANTS in carousel fraud VAT scams can be collectively liable for evaded tax, even if they did not profit from the scheme, European Court of Justice (ECJ) advocate general Miguel Poiares Maduro has advised.
The Commission decided back in March to stop export supports on EU-produced sugar going to the Balkans, because of suspicions that traders in the region were running a carousel fraud and re-exporting cheap EU sugar back into the Single Market for sale at high European prices.
But professional criminals have not confined themselves to carousel fraud, with over a third of cases coming to court carried out by professional gangs at a total value of pounds 538 million - some 91 per cent of the total value.
Days before Customs officers arrested 10 men in Wales, the West Midlands, Cheshire and Buckinghamshire over carousel fraud allegations.
Debate on VAT carousel fraud, opened by Baroness Cohen of Pimlico (Lab)
Carousel fraud involves importing, or claiming to import, goods from another EU country without paying VAT, then selling them on and pocketing the tax.