carousel fraud


Also found in: Wikipedia.
Related to carousel fraud: MTIX

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 ?
Member States cannot afford to stand by while billions are lost to illegal VAT carousel fraud and inconsistencies in the system."
The documents piece together how the carbon credit carousel fraud began in France, moved to the Netherlands and the UK, before migrating to Germany and Italy, in a pan-European fraud that is estimated to have cost EU governments [euro]5bn.
Widespread VAT fraud in the construction sector - often referred to as carousel fraud - costs the Government and economy hundreds of millions of pounds every year.
Last year Revenue lifted 24 new Honda CR-Vs worth in excess of [euro]700,000 as part of an investigation into VAT carousel fraud in the motor sector.
The firm allegedly claimed bogus VAT repayments on a complex series of fake transactions across Europe in a so-called carousel fraud.
The court found the former bank employees played an important role in carousel fraud perpetrated by an international gang who stole around 850 million euros ($956 million) between 2009 and 2010.
Mr Vaughan, from Liverpool, was banned from being a company director in 2009 after he signed an undertaking that he had been involved in a VAT "carousel fraud".
A recent working paper by the IMF estimated that an overtly bureaucratic filing system in some OECD countries shaves off up to 15 working days in a year in terms of productivity lost, with little effectiveness being achieved in terms of addressing tax leakages such as "carousel fraud".
There is, for instance, considerable evidence to suggest that terrorist groups have a hand in 'missing trader' intra-community fraud, more commonly referred to as VAT carousel fraud. Estimates of how much carousel fraud costs the country vary between PS2.5 billion to more than PS5 billion a year - a sizeable proportion of which is almost certainly used to fund terrorism, either directly, or to promote it via online videos and other literature.
Carousel fraud used to cost the UK treasury a staggering PS10billion every year until the rules were tightened.