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- .VAT Missing Trader Intra-Community Fraud (MTIC)
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VAT Missing Trader Intra-Community Fraud (MTIC)
What is Carousel Fraud?
Carousel Fraud, also known as Missing Trader intra-Community Fraud (MTIC) or Missing Trader Fraud, is a serious crime under EU law.
It is the theft of large amounts of VAT – mainly organised by professional criminal gangs.
Carousel Fraud cases occur a lot in the European Union; criminals exploit the moving of goods between jurisdictions which is VAT-free.
Carousel fraudsters benefit from these EU laws by charging VAT on the sale of goods, but instead of paying the VAT back to the jurisdictional Government, the VAT is never declared – and so the 21% charge is pocketed.
The party who has pocketed the VAT is referred to as the “missing trader”.
Carousel trading is when the final part of the chain links up with the first party within the process and so the chain starts again and goes round and round, like a carousel.
Carousel Fraud Explained
Stage 1: Group A in Germany sells a box of goods to Group B in the Netherlands. No VAT is charged as VAT is not applied to trading between EU countries.
Stage 2: Group B then sells the goods to Group C within the country. Group B applies VAT to the goods at 21%.
Stage 3: Group B should declare the VAT charge but doesn’t. This is ‘missing trader fraud’.
Stage 4: Business C can deduct the VAT off his next VAT return. He sells the goods to Group D and charges VAT.
Stage 5: D can now sell the goods back to Group A across the border and not charge VAT.
What can I do if I get accused of this type of fraud?
Carousel fraud convictions fall under the Proceeds of Crime Act and often result in VAT fraudsters jailed with fairly lengthy prison sentences.
Carousel fraud and MTIC cases can often be very complex – involving a lot of complicated arrangements between businesses and different countries.
These cases can take on even more gravity with the involvement of the HMRC. As a result, investigations are often time consuming, lengthy and drawn out.
How can DPP Business & Tax Solicitors help?
If you have been accused of any involvement with carousel fraud or MTIC fraud, DPP Business & Tax Solicitors provides legal defence advice, support and representation.
Getting legal representation as soon as possible for anything involving carousel VAT fraud or MTIC VAT fraud is vital.
Our financial lawyers are trained and highly experienced in these cases, and can deal with all types of enquiries in this field.
Everyone deserves the best defence in law and our dedicated team will make sure that you get yours.
Contact us here – one of our expert business & tax solicitors will be in touch as soon as possible.
When it comes to tax services, our solicitors have a reassuring amount of experience. We’ve been defending fraud cases for more than twenty years.
Additional resources are now being directed by HMRC to identify and tackle tax avoidance, tax evasion and organised criminal attacks on the system.