VAT Fraud Solicitors
The estimated loss of revenue to UK Government in recent years annually is £11 billion meaning the HMRC now have specialist teams in this area thus resulting in more fraud cases being prosecuted.
MTIC, VAT and Carousel Fraud involve long and complex investigations carried out by HM Revenue and Customs (HMRC). It is important to get specialist legal defence representation from an experienced solicitor firm, such as MJP solicitors, to enable a strategy to be formed in relation to the fraud investigation or case before the Court.
Further Detailed Advice AvailableFurther advice on tax offences can be found on our tax fraud website.
MTIC and Carousel Fraud
MTIC fraud (Carousel fraud), in basic form, involves small goods, usually mobile phones and computer chips, which are high in value and a chain a companies who deal in large quantities of the goods.
The chain starts when the high value goods are imported VAT free from a E.U. based company. The goods will then be sold on, VAT free, to a UK company and will charge VAT accordingly. This chain can operate through a number of companies who are all liable to pay VAT. In some fraud cases the goods are re-exported back to the E.U. where the exporter reclaims the VAT from HMRC. The VAT liability can end up running into millions of pounds being owed to HM Revenue and Customs.
The prosecution need to prove, beyond reasonable doubt, that there was an agreement between the parties involved in the fraudulent transactions to falsely reclaim VAT and that they are connected to the companies. Usually the charge is conspiracy to defraud.
Investigations into carousel fraud have often been unsuccessful simply because of the complexity of the evidence involved and the number of parties who are potentially defendants.
VAT frauds are usually brought under Section 72 Value Added Tax Act 1974. However cases can also be brought under the Fraud Act 2006 which was brought in to make fraud cases easier to prove.
VAT fraud cases take different forms but in its simplest form VAT fraud cases are usually aimed at establishing that a defendant, with a business, has paid to little or reclaimed too much. The fraud allegation usually involves the falsification of invoices and establishing the identities of parties involved in the invoicing process. Witnesses may be sought from the defendants business or even from accountancy records.
Prosecutions in this area have been less frequent in recent years by reason of the emphasis being placed on carousel fraud prosecution.
MJP solicitors have defended VAT frauds and tax frauds and at the heart of a successful defence is an organised approach to the defence evidence gathering process from the outset.
MJP solicitors have established practices in connection with the collection of defence evidence and documentation that enables the practice to form a quick analysis of records to identify where problems may lie. By using scanning and database technology huge volumes of documents can be collated
Sentences in carousel fraud cases can typically range from 9 months for the less serious money laundering offences associated with the fraud up to 10 years for the major players in the case. In sentencing, much depends on the role of the different defendants. Just because a defendant has to plead guilty does not always guarantee a prison sentence. Sentences can in some cases be suspended, and a good fraud lawyer can sometimes minimise the role his or her client played through negotiation with the prosecution and persuasion of the judge.
Conviction frequently results in substantial sentences of imprisonment and orders for confiscation under the Proceeds of Crime Act.
MJP solicitors provide advice and representation on all vat fraud and MTIC / Carousel Fraud matters throughout England and Wales particularly in Liverpool (including The Wirral), London and the North West.
Fraud investigations can be very stressful and having an experienced solicitor on your side can help ease the burden. Specialist advice for any investigation into VAT Fraud and MTIC / Carousel Fraud can be given by one of our experienced fraud solicitors.
For free advice call now on 0333 011 0515 or use the contact us page.