HMRC hits back at carbon frauds

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.

Anyone navigating their way through the carbon credit trading legislation will understand its complexity but must also be aware of their company’s possible exposure to VAT carousel fraud.

Continued...

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Comments

Carbo Fraud

Anonymous | | Permalink

I thought the whole carbon thing was a fraud all along.

HRMC Employment

uninet | | Permalink

Of course we will need more HMRC "experts" to keep this fraud under control.

Or

Why don't we just scrap it and not bother?

EU could diminish VAT Carousel Fraud IF only additive returns we

Anonymous | | Permalink

As VAT is basically a French Invention (TVA - nicknamed "Tout va ajuter" i.e. everything goes up) in my opinion, it seems sensible to point out RE QUOTE then party E may export it to another European country and claim back the VAT from HMRC. Whilst party E may be completely unaware that there has been a fraud in the supply chain, it may nevertheless find itself the subject of legal proceedings by HMRC if it has not taken sufficient caution in its trading activities.  ENDQUOTE that EU could diminish VAT Carousel Fraud IF only additive returns were allowed.

In other words, the EU law could be modified to reflect the commercial world as it exists, rather than what "some sixth form swot economists" think it should be!

SUM UP: Each VAT returner would take the risk that VAT it has paid may not be reclaimable, unless it were a profitable entity! As this would of course put the total VAT revenue take up, if no other changes were to be made. So - to be revenue neutral - the VAT percentage chargeable values would have to be reduced!!

 

Everybody agree that VAT percentage chargeable should be reduced asap?