carousel fraud

(redirected from Missing trader 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 ?
The UK Government is introducing the changes to the industry in reaction to an increase in "missing trader fraud", where suppliers fail to declare any VAT received from business transactions to HM Revenue and Customs, that has resulted in an estimated loss of PS100 million in tax.
The investigation uncovered that Crouch Commodities Limited participated in missing trader fraud. This is commonly known as Carousel fraud, as large consignments of electrical or other small item size high value goods are invoiced rapidly and repeatedly around trading chains, speeded up by movement on paper , with actual movement of goods only taking place as they enter or exit the UK.
When the tax authorities come to claim the VAT, the company that has taken it has vanished - which is why this is known as missing trader fraud.
Chohan is wanted after failing to appear in court for his part in an estimated PS200 million missing trader fraud.
Entrepreneur Raj Kundra's debut thriller builds its story around the Missing trader fraud that European traders used to exploit European tax norms in 2000.
"Missing trader fraud is not merely a paper fraud, it funds other serious crime and we're determined bring to justice criminals behind this type of fraud."
On 1 December 2008, the Commission adopted a communication setting out a short-term action plan with a list of future legislative measures enhancing tax administrations' capacity to prevent and detect VAT fraud (in particular 'missing trader fraud') as well as to recover taxes in case of fraud.
The case is thought to be the latest example of an escalating problem known as 'missing trader fraud'.
Euan Stewart, of the HMRC's criminal investigations department, said: "Tackling missing trader fraud is HMRC's top priority.
The scam ( also known as missing trader fraud ( cost the Treasury up to pounds 3bn in 2005/06 and is estimated to be worth pounds 170bn annually across the EU as a whole.
'Missing trader fraud is not merely paper fraud, but often features links to other forms of criminal activity.
HM Customs & Excise is beginning to win its battle against the scourge of "missing trader fraud" (MTF), a report from the National Audit Office has revealed.