The upper tier tax tribunal has upheld the principle that companies caught up in missing trader fraud can be liable for VAT penalties.
carousel fraud
HMRC won an upper-tier tribunal decision that means a company unwittingly caught up in a carousel fraud will lose £176,000 in VAT payments.
Two VAT carousel fraudsters had their jail sentences increased by 10 years each after failing to pay back HMRC confiscation orders amounting to £184.6m - the largest ever.
HMRC secured its biggest ever confiscation order against two members of a VAT tax fraud gang who stole £37.5m.
Sarah Donald of law firm Dundas & Wilson outlines the problem of VAT carousel fraud in the carbon credits trading sector and assesses HMRC’s response.
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