Commentary

V7.314 How missing trader and carousel fraud works

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.314 How missing trader and carousel fraud works

Part V7 Tax planning | Commentary

V7.314 How missing trader and carousel fraud works

It is important that advisers know the basis of MTIC fraud (also referred to as 'carousel fraud' because the same goods go round in a trading circle, often many times) in order to advise clients how to avoid becoming innocently involved in an illegal trading chain. For details of the new penalty for participating in VAT fraud from 16 November 2017, see V5.360l.

MTIC VAT fraud basically works by the creation of a supply chain – where at some stage, a key player in the chain disappears. The chain normally involves goods being

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