After microchips and mobiles, VAT fraudsters turn to carbon credits Times Online (Law Central)

Published on 19 Aug 2009 under category: cubism

By Dan Hyde, Consultant at Cubism Law

As published at Times Online 19 August 2009

Seven people were arrested today in connection with an alleged £38 million VAT fraud involving emissions trading.

Like all carousel frauds, the six men and one woman are accused of buying carbon credits from overseas VAT-free sources and then selling them on including VAT in the UK - without passing that VAT to the taxman.

HM Revenue and Customs searched 27 business and residential properties using sniffer dogs to uncover hidden cash.

After losing hundreds of millions of pounds in VAT frauds, the Government has clamped down on loopholes that allow people to trade mobile phones and computer chips, the most popular carousel items, VAT free, leaving scammers to look for new things to buy and sell.

Dan Hyde, a consultant at Cubism Law, said: "Using dogs to sniff out concealed cash is a novel tactic and should send a warning that large quantities of cash are becoming ever more difficult to move on or conceal."