FTI speaks at VAT enquiry
House of Lords committee looking into the impact of missing trader fraud in the UK
The Federation of Technological Industries (FTI) gave evidence at a House of Lords (HoL) committee enquiry last week into the impact of VAT missing trader fraud in the UK.
In an enquiry that has been running for more than a year, the HoL committee has heard evidence from numerous industry and government representatives. It is unclear when the committee will reach a conclusion.
Also appearing at the hearing was Angela O’Hara, a representative from Vodafone, and Michael Cheetham, the former managing director of Bond House Systems, which was unwittingly involved in a missing trader fraud chain in 2002. It won a European Court of Justice appeal against HMRC last year (CRN, 12 January 2006).
Royston Ford, a surveyor at London-based firm Cunningham Lindsay Marine, which has monitored the effect of HMRC’s Extended Verification process on UK firms, also gave evidence.
During the hearing, Ford said: “I have concerns about the government’s approach to this problem. What is described as a crackdown on fraud is a crackdown on trade. Trade itself has been stopped.”
Fred Howarth, chairman of the FTI, said: “I have found [the Lords’] approach refreshing. I am encouraged that the establishment is looking at a solution to the problem of cracking down on fraudsters, rather than cracking down on the industry.”