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09 Feb 2009
Comments:4
HM Revenue & Customs (HMRC) has hailed its VAT fraud-busting strategy after it was praised by KPMG for contributing to a dramatic drop in public sector fraud in 2008.
According to the KPMG Fraud Barometer, overall fraud mushroomed in 2008, with £1.1bn of cases coming to UK courts, the second highest level in the survey’s 21-year history (Channelweb, 3 February).
But the report revealed how public sector fraud had dropped, with 56 cases worth £207m coming to court in 2008 compared to 68 cases worth £833m in 2007.
Further reading
Carousel or MTIC fraud most commonly associated with mobile phone and computer components traders dropped from £700m in 2007 to £115m in 2008.
Hitesh Patel, fraud investigation partner at KPMG Forensic, said: “While not out of the woods yet because further carousel fraud prosecutions may come to court, it is an encouraging sign that government efforts to counteract carousel fraud may be paying dividends.”
An HMRC representative said: “The growth of MTIC fraud has been successfully reversed through our strategy, which has resulted in activity in this pernicious fraud falling to historically low levels.
“We thoroughly investigate VAT repayment applications and refuse repayment whenever we have suspicions. We will not repay the VAT until we are completely satisfied that the claim is legitimate.”
Anthony Elliot-Square, managing director of the International Phone Traders web site, said: “HMRC’s VAT strategy has been a little like saying it is going to stop cars speeding by banning all cars from the road.
“But on a positive note it shows there is still a legitimate industry out there, despite HMRC, because business has increased this year.”
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Do you agree?
Oh please!
Give me strength, what utter nonsense this is. HMRC have been given powers to be the judge and jury outside of the Judicial system. Therefore, it is they who decide if someone should be punished or not. When a state gives such powers to a governing body, we end up with draconian laws, these lead to the loss of civil liberties which leads to dictatorship which leads to a totalitarian state.
Luckily for us, there is a general election looming. It's about time we rid ourselves of these extreme left-wing Labour politicians. We need a big swing to the right where business gets a chance to flourish and these sorts of Hitler type laws will be abolished and just go down into the history books under the category "big mistakes"
HMRC has become an inept organisation the makings of which have Labour Party written all over it.
Posted by ReeceH | 30 Aug 2009
carousel vat fraud
You cannot believe a word that HMRC say about carousel fraud -Just a fraction of cases come to court and they end up with less than 10% of the theft being subject to a confiscation order -it is common Knowledge that £tens of billions has been stolen
Posted by vince | 12 Feb 2009
Fraudsters
Yet again the govrnment have managed to massage the figures. HMRC have launched a disgraceful campaign against many companies with medieval concepts of collective punishment as aknowledged by Dawn Primarolo, Gordon Browns agent. Companies are suffering because of this in spite of the fact that jobs have been lost in this difficult economic climate. Further, millions of pounds of UK company money is still held in foreign banks that could be used to further UK business. Gordon Browns Britain no longer has any credibility, this will not bring any confidence in the near future..
Posted by B. Kalia | 12 Feb 2009
fraudsters
The biggest crooks and fraudsters out there are HMRC. They are a law unto themselves. By STEALING honest people's money they have driven down fraud.
The tax system itself is fundamentally flawed. Maybe if they fixed their own inadequacies first there wouldn't be so much wasted money everywhere.
Posted by Tom | 09 Feb 2009
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