VAT fraud losses 'five times worse in UK'. By Dan Martin

The UK lost £8.4bn to VAT fraudsters between June 2005 and June 2006 ' five times more than any other EU country, the BBC has claimed.

The broadcaster said researchers working on 'Panorama' obtained a report from a Belgian taskforce whose estimates on the losses to so-called carousel fraud are much higher than the last published official UK estimates.

The study claimed that in the 12 months to June this year, £8.4bn can be attributed to the illegal practice. The figure is five times higher than the losses suffered by any other country in the EU.

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