Internet rises level of frauds
Date: August 03, 2007Source: Vnunet.com
In the first half of 2007, the government and businesses lost £594m to fraud, almost three times the figure recorded for the previous six months.
So-called carousel fraud has been the biggest contributor over the last six months, with four cases alone totalling £440m.
Carousel fraud occurs where fraudsters obtain VAT registration to acquire goods such as computer chips and mobile phones VAT-free from other EU member states. They then sell the goods at VAT-inclusive prices and disappear without reimbursing the VAT costs paid to them.
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