One of the most common types of VAT fraud is ‘missing trader’ fraud, which occurs when an individual sells goods to a third party, charges VAT and then either disappears or deliberately takes their company into administration before paying over their VAT liabilities.
More cases of this type have been brought by HMRC recently, as part of its crackdown on fraudulent activity.
A recent example is the recent conviction of four men who had been involved in a fraud relating to the importation of mobile phone and computer chips from Europe and the United States. According to HMRC, the fraud worked by selling the phones and chips in the UK along a contrived supply chain before the company exported the goods to Switzerland or Dubai. The traders at the start of the chain meanwhile – which were in some cases set up purely to commit the fraud – invariably failed to pay the VAT they had charged on the original supply.
HMRC investigators shut down the multi-million pound fraud, after stopping attempts to claim VAT repayments worth over £18 million.
Two of the company's directors, its company secretary and one of its employees were recently convicted of cheating the public revenue following a trial at Kingston Crown Court. Three of the defendants were also found guilty of one money laundering offence.
Contact Lewis Nedas’ Criminal Lawyers in London
If you have been charged with fraud and require specialist legal advice, please contact our solicitors Jeffrey Lewis or Siobhain Egan on 020 7387 2032 or complete our online enquiry form here.
This blog post is intended as a news item only - no connection between Lewis Nedas and the parties concerned is intended or implied.
