Articles about Missing Trader

Old Bailey Lady Justice

Dodgy mobe dealer jumps on VAT carousel, gets 13-year ban

The director of now-dissolved mobile phone dealer Fima Consulting has been disqualified from managing a limited company for 13 years over his part in a £1m VAT scam, according to a UK government press release. Fiaz Razzak Malik was disqualified following an investigation by the Official Receiver at the Public Interest Unit, a …
Kat Hall, 13 Jul 2015

Five jailed for £140m VAT scam

Five men have been jailed for their roles in a huge missing-trader fraud which netted £140m. The men were sentenced to 37 and a half years in prison in total. HMRC said the five were motivated by pure greed. They were convicted of various counts of cheating the Revenue contrary to Common Law. Andrew Hart (40) of Cricklewood …
John Oates, 24 Mar 2011

Hefty porridge for £300m VAT ring

Five members of a missing trader fraud gang have received sentences of up to four and a half years for a £17m scam based around mobile phones, HMRC revealed yesterday. The gang nobbled the revenue in a "complicated" fraud centred on mobile phones, SIM cards, memory and other mobile phone accessories. HMRC said paperwork …
Joe Fay, 03 Dec 2010
For Sale sign detail

VAT fraudster gets 9 years for refusing £40m bill

Emmanuel Hening, already serving the longest sentence ever secured against a VAT-fraudster, has seen another nine years added onto his sentence. A court last week added to his 15-year sentence because he has failed to repay £40m demanded by Her Majesty's Revenue and Customs. Vat fraudster Henning Hening, who has dual …
John Oates, 22 Nov 2010
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Carousel fraudsters must pay back £92m

Her Majesty's Revenue and Customs is demanding two convicted carousel fraudsters pay back £92m in cash, cars and properties or face an extra ten years in prison. The gang of 21 were sentenced to a total of 74 years in May. They ran a massive missing trader or carousel fraud importing computer chips from Ireland VAT-free and …
John Oates, 08 Jul 2010

Chips-for-gold fraud gang get 74 years' jail

A 21-strong gang of CPU-dealing VAT fraudsters have been sentenced to a total of 74 years in prison. Reporting restrictions on Operation Devout were lifted today following sentencing in the seventh and final trial related to the complex organised crime network. The gang were involved in importing CPUs, mainly from Ireland. …
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VAT Directive to change to end carousel fraud

The European Commission wants to amend the VAT Directive to help eradicate a kind of international VAT fraud that is estimated to have cost the UK exchequer up to £2 billion a year. Carousel fraud is a form of what is known as Missing Trader Intra-Community (MTIC) fraud, though the terms are sometimes used interchangeably. …
OUT-LAW.COM, 30 Sep 2009
The Register breaking news

Revenue U-turns on carousel carbon trading

Her Majesty's Revenue and Customs said that from midnight last night all trades in carbon credits will be VAT-free, because of fears that carousel fraudsters, who usually fraudulently exploit computer chips and mobile phones, will target the trade. Carousel fraud or Missing Trader Intra-Community fraud occurs when goods are …
John Oates, 31 Jul 2009

Revenue not scared of carbon trading fraud

Her Majesty's Revenue and Customs is not seeing a stampede of fraudsters hitting carbon trading as a new way to commit carousel fraud, or missing trader intra-community fraud. Classic MTIC fraud involves buying and apparently importing goods from another EC country, so no VAT is charged. These are then sold on, with VAT added …
John Oates, 20 Jul 2009

EC to amend VAT Directive

The European Commission has proposed (pdf) a series of measures, including changes to the VAT Directive, to prevent and detect VAT fraud. The Commission today adopted a Communication (pdf) presenting a short-term action plan with a list of future legislative measures to enhance the capacity of tax administrations to prevent or …
OUT-LAW.COM, 02 Dec 2008

VAT fraudster must repay £26m

A convicted VAT fraudster has been ordered to pay Her Majesty's Revenue and Customs £26m or serve an extra ten years in prison. Craig Johnson is already serving 12-and-a-half years for his part in a missing trader or carousel fraud which defrauded the Revenue of £138m. The confiscation order means Johnson must cough up £8m …
John Oates, 24 Nov 2008
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EC tries to get on top of carousel fraud

The European Commission is proposing speeding up how VAT regulations work in order to reduce carousel fraud. Carousel fraud, or missing trader fraud, involves importing high value but VAT-free goods from another Community country. The goods are then sold on with VAT added, before the company disappears without paying HMRC the …
John Oates, 17 Mar 2008
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MPs claim IT supply savings

Whitehall has acted on the recommendations of a parliamentary committee by improving services and value for money, according to its chair. Edward Leigh, chair of the Commons Public Accounts Committee, said the government's response to recommendations in the committee's 16 most recent reports has resulted in action by Whitehall …
Kablenet, 25 Oct 2007
Warning: roundabout

VAT fraudsters 'laughing all the way to their offshore tax haven'

Carousel fraud accounted for 87 per cent of the total fraud cases reported in the UK for the first half of 2007. According to research figures published by accounting firm BDO Stoy Hayward, there were 141 business frauds (reflecting a 42 per cent jump) over £50,000 in value at a cost of £538m, of which £468m was from major VAT …
Kelly Fiveash, 13 Aug 2007
Warning: roundabout

Carousel fraud jumps to record high

A significant number of carousel fraud cases worth more than £100,000 passed through English courts in the first six months of the year. KPMG Forensic, which monitors fraud figures, said there was a total of 107 fraud cases in the six months leading up to June this year, which had a total value of £594m. It said the dramatic …
Kelly Fiveash, 30 Jul 2007

HMRC arrests 10 carousel fraud suspects

HM Revenue and Customs (HMRC) officers arrested 10 suspected multi-million pound "carousel" fraudsters last week in a nationwide swoop. It said arrests were made across the UK including in Birmingham, Slough, and Maidenhead, with 20 premises being searched in connection with a suspected missing trader intra community (MTIC), …
Kelly Fiveash, 02 Jul 2007

MP's son jailed over VAT scam

The son of Labour MP and millionaire businessman Mohammed Sarwar has been jailed for three years after being found guilty of an £850,000 VAT scam involving imported mobile phones. Athif Sarwar, 28, of Lynebank Place, Mearnskirk was handed the custodial sentence yesterday at the High Court in Glasgow. According to the BBC, …
Kelly Fiveash, 29 Jun 2007

VAT 'reverse charge' scheme kicks off

As of today mobile phones and computer chips will be subject to a new fraud-busting VAT accounting scheme called "reverse charge". The new scheme has been introduced by Her Majesty's Revenue and Customs (HMRC) in a move to stamp out Missing Trader Intra-Community fraud (MTIC). MTIC, which is more often referred to as carousel …
Kelly Fiveash, 01 Jun 2007

'Brown should rethink EU proposal on VAT'

Gordon Brown has been warned that plans to simplify VAT rules will severely impair the European Union's ongoing battle against tax fraud. In a letter to the Prime Minister in-waiting the International VAT Association (IVA) has urged Brown to reconsider the "B2B" (business to business) proposal on Europe's escalating VAT fraud …
Kelly Fiveash, 31 May 2007
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MP's son guilty of VAT carousel fraud

The son of Labour MP Mohammed Sarwar has been convicted of an £850,000 money laundering scam involving imported mobile phones. The Glasgow High Court heard that Athif Sarwar, 28 of Lynebank Place, Mearnskirk had handled thousands of pounds of money described as "criminal property", the BBC reports. Sarwar was found guilty of …
Kelly Fiveash, 24 May 2007
The Register breaking news

HMRC claims IT successes

HM Revenue and Customs revealed today how joining up its IT systems has contributed to falling costs in the merged departments. However, the annual report also said losses to missing trader VAT frauds had been creeping up above one of its key targets. Revenue and Customs' financial accounting systems were merged and their …
Mark Ballard, 18 May 2007

HMRC gets new tool to battle VAT fraud

Computer chips and mobile phones will be subjected to a "reverse charge" VAT regime from June 1 this year in a bid to slash missing trader fraud. Her Majesty's Revenue and Customs (HMRC) said the reverse charge system should remove the ability "to steal VAT on business-to-business transactions", effectively preventing Missing …
Kelly Fiveash, 19 Mar 2007

Customs arrests 10 alleged VAT-fraudsters

Customs arrested 10 people this morning suspected of involvement in a £250m carousel fraud. The arrests were made as a result of Operation Euripus back in July 2003 - which saw 46 people arrested after raids on 93 addresses across Europe. As a result of that operation half a million pages of documents and 28 terabytes of …
John Oates, 06 Feb 2007

Record sentence for VAT fraudster

The man behind a £54m VAT fraud gang has been sentenced to 15 years in prison - the longest ever UK sentence for such a crime. Emmanuel Hening, who has dual French and Belgian nationality, was found guilty on three counts of missing trader fraud at Worcester Crown Court. He was extradited from France in December 2005. The …
John Oates, 09 Jan 2007

Carousel fraud costs UK £3bn

Missing trader or carousel fraud cost Her Majesty's Revenue and Customs £3bn in the last financial year. Figures from the Treasury reveal the size of the problem, although HMRC believes it is getting on top of the problem - helped by the closure of the First Bank of Curacao earlier this year. Customs estimates that attempted …
John Oates, 07 Dec 2006

Carousel fraud slows down again

Carousel or missing trader fraud has fallen for the second month in a row. Figures from the Office of National Statistics reveal that trade in goods associated with the fraud fell to £1.2bn in August compared with £1.5bn the month before. Her Majesty's Revenue and Customs (HMRC) has made the fraud a top priority, which has …
John Oates, 11 Oct 2006

New VAT regime for Christmas

Traders in a broad range of electronic goods have three months to overhaul their systems ahead of a VAT shakeup designed to crack down on missing trader fraud. HM Revenue and Customs earlier this year asked the European Union for permission to move to a reverse charge system for VAT on items such as mobile phones and computer …
Joe Fay, 18 Sep 2006
For Sale sign detail

Revenue pinches 22 in VAT fraud raids

Twenty-two people are in custody today after the Revenue's biggest operation against carousel fraud. Early this morning more than 400 investigators from Her Majesty's Revenue and Customs, backed by 100 police officers, used 60 search warrants at business and residential addresses across the country. Police officers from Greater …
John Oates, 15 Aug 2006

VAT fraud drives booming UK exports

Soaring VAT fraud is significantly inflating the UK's export growth figures. The Ernst & Young ITEM Club Summer forecast, released yesterday, predicts that export growth for 2006 will be more than 15 per cent. "However, once you allow for Missing Trader VAT fraud (MTIC) the headline figures look much more modest and stand …
Drew Cullen, 25 Jul 2006

Computing VAT regime will be turned on its head, says EU Commissioner

VAT on mobile phones, computer chips and other digital goods will not be charged between businesses under new rules about to be approved in Europe. Tax commissioner Laszlo Kovacs has said the plan will be approved in the next two weeks. The plan is designed to combat a crime dubbed 'carousel fraud'. Criminals have been moving …
OUT-LAW.COM, 14 Jul 2006

VAT fraudster gets six years

A man was jailed for six years on Friday for his part in VAT-avoiding carousel fraud. Mark Selby pleaded guilty to missing trader offences between May 2002 and May 2003. During that time Selby's company sold mobile phones worth £326.5m to 12 UK companies. He also sold phones to Spanish companies which supplied the same 12 UK …
John Oates, 19 Jun 2006

EC backs UK tax man on VAT fraud

The European Commission has strengthened HMRC’s hand against VAT fraudsters by backing a “reverse charge mechanism” for VAT payments. The backing for the reverse charge approach was announced as part of a “coherent European strategy” announced by Brussels yesterday. A reverse charge system would mean VAT is accounted for only …
Joe Fay, 01 Jun 2006

Euro judges back HMRC on VAT fraud

UK customs authorities struggling to contain ballooning VAT fraud have won a partial victory in the European Court of Justice. In a preliminary ruling yesterday, the judges decided that traders caught up in carousel frauds could be held liable for unfair VAT anywhere in the trading chain, if they had “reasonable grounds” to …
Joe Fay, 12 May 2006

VAT scams 'cost UK £5bn' in last fiscal year - claim

HMRC has rejected claims that carousel VAT fraud cost the UK £5bn in the last financial year and could hit £7bn in the current year. The Guardian reported today that figures from the Office of National Statistics suggest the problem , worth £1.1bn and £1.9bn in 2004-2005, had ballooned and the final figure for the just finished …
Joe Fay, 09 May 2006

Missing traders leave hole in VAT receipts

Spiralling missing trader fraud has led to the first year on year drop in VAT receipts since the tax was launched over 30 years ago, latest government figures show. The fiddle, typically carried out around shipments of small high value items such as computer chips and mobile phones, could amount to £2bn a year, HM Customs and …
Joe Fay, 25 Apr 2006
channel inflates ID theft risk

The UK government has come out with yet another questionable study to support its obsessive bent to impose ID cards on the British public. Once again, ID fraud figures as the reason why Brits need expensive biometric proofs of identity. A Home Office study claims ID fraud costs Britain £1.7bn. But most of these losses have …
John Leyden, 03 Feb 2006

UK goes into reverse on VAT fraud fight

The UK government plans to overhaul the VAT regime in an attempt to clamp down on missing trader scams which are costing it over £1bn per year. HMRC has asked the European Commission to let it to move to a “reverse charge” procedure for VAT on certain items, such as mobile phones, computer chips, and other high-value electronic …
Team Register, 27 Jan 2006

Mobile fraudsters sentenced

Four people found guilty of VAT fraud were sentenced for a total of 22 years at Maidstone Crown Court late last week. The four fraudsters engaged in missing trader fraud, where goods are sourced VAT-free from within the EC and sold on with VAT added. The trader then disappears before paying the Inland Revenue the VAT. For two …
John Oates, 12 Sep 2005

Four found guilty of £40m VAT fraud

Four people were found guilty at Maidstone Crown Court on Friday of involvement in a “carousel” VAT fraud that is estimated to have cost HM Revenue & Customs (HMRC) over £40 million over two years. The four – Stephen Michael Pigott from Dubai, Stacey Haber-Hofberg from Hampshire, Joanna Cynthia Harris of London and Theresa …
OUT-LAW.COM, 17 Aug 2005
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VAT fraud changes shape of trade deficit

An unexpectedly large drop in the UK’s deficit on trade in goods has prompted the government to investigate whether changing patterns of VAT fraud are distorting the figures. Lastest figures from the Office of National Statistics show a surge in exports from May to June, with the deficit on trade in goods for June improving by …
Team Register, 10 Aug 2005
The Register breaking news

UK ID scheme rides again, as biggest ID fraud of them all

Analysis Home Secretary Charles Clarke is "aware of the genuine concerns" over the UK ID scheme, but the Bill his department reintroduced to Parliament today is, according to Home Office Minister Tony McNulty, "in essence... the same Bill" as the one that fell prior to the general election. So, it would seem that the new-look listening …
John Lettice, 25 May 2005

Jury clears businessman in VAT fraud case

An Irish businessman walked free last week after a UK court found him not guilty of multi-million pound VAT offences. Dylan Creaven, 31, of Kensington, London, was accused of defrauding HM Customs and Excise of £14m. He was originally arrested in late 2002 and accused of fraud totalling £162m. Charges were later reduced to two …
John Oates, 23 May 2005

Dutch Customs exposes UK chip carousel fraud

Fraud investigators of the Dutch Economic Inspection Service of the Fiscal Intelligence and Investigation Service (FIOD) have discovered a large carousel fraud with 2,000 PC components destined for the UK at Schiphol Airport. The seized component were exported to the US from the UK and would be re-introduced to the UK via the …
Jan Libbenga, 05 May 2005

Arrests over £580m VAT fraud

Two men were arrested on Friday over allegations of a £580m VAT fraud involving mobile phones and missing trader fraud. One, a 45-year old German national, is now awaiting extradition to face money laundering charges in Germany. A 42-year old British man, questioned about alleged money laundering and cheating the public revenue …
John Oates, 28 Feb 2005
The Register breaking news

Missing trader fraudster goes missing

A VAT fraudster went on the run from Bristol Crown Court last week shortly before being convicted for his role in an £800,000 tax fraud. Nasser Ahmed, from Hounslow, London, was facing charges of defrauding Customs and Excise out of more than £800,000. Ahmed was out on bail and when the jury left the court to consider its …
John Oates, 22 Feb 2005

Customs loses VAT weapon

Customs and Excise's ability to counter missing-trader or carousel fraud suffered a blow late last week with an adverse decision from the Advocate General of the European Court of Justice. In October 2003 Bond House Systems, a large computer component wholesaler, lost a case against Customs which led Customs to withhold the …
John Oates, 21 Feb 2005
The Register breaking news

Chip fraud quartet jailed for VAT scam

Four people have been sentenced to a total of nine years in prison for Missing Trader VAT Fraud. The three men and a woman were sentenced at Southwark Crown Court late last week. They are Paul Andrew Ward from Leighton Buzzard who got six years and six months, Michael Stuart Keech from Northamptonshire sentenced to 12 months, …
John Oates, 19 Jul 2004
The Register breaking news

Scottish dealer jailed for chip VAT fraud

A Scottish businessman has been sentenced to four years in jail for failing to pay VAT on computer chips he imported from EC countries, sold to UK customers with VAT included and then failed to pass the tax onto the Revenue. Michael George Voudouri, 36, from Bridge of Allan, Stirling evaded £3m in VAT payments. Trading as …
John Oates, 09 Jun 2004
The Register breaking news

VAT man claims five fraud scalps

Customs and Excise today secured a seven-year prison sentence for a mobile phone salesman convicted of a £16m VAT fraud. Monmohan Singh Sandhu, of Birmingham, was convicted at Southwark Crown Court for his part in a missing trader intra-community (MTIC) scam. This involved buying mobile phones from Luxembourg, claiming they …
John Oates, 27 Apr 2004
The Register breaking news

Dealers win High Court VAT action against Customs

The FTI (Federation of Technological Industries) has won the right to take its legal battle with Customs and Excise to the European Court. The trade body was set up in response to the Finance Act which made brokers responsible for VAT payments through the entire supply chain. Customs' intent was to destroy widespread and …
John Oates, 09 Mar 2004