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EU hit by carbon fraud

Published on 15 Dec 2009 under category: legal

Carbon trading fraud crimes could cost taxpayers billions of euros, it has been claimed.

Latest estimates predicted that the European Union (EU) has lost at least €5 billion (£4.5 million) to this kind of fraud, according to Europol.

These crimes involve fraudsters registering to purchase carbon credits in Europe and then claiming back the value-added-tax in their own country.

Carbon trading scams are widely known as a type of carousel fraud.

Rob Wainwright, director of Europol, said: "These activities endanger the credibility of the EU's emission trading system and lead to the loss of significant tax revenue for governments. Europol is using its expertise to help target the organised crime groups involved."

The group claimed that the €5 billion losses were incurred by fraud crimes carried out in the last 18 months.

Earlier this year, seven people were arrested in connection with a carbon trading fraud in which it was believed that individuals involved purchased credits abroad and claimed back the tax in the UK.

If you require advice on Corporate Fraud please call us on +44 (0)20 7831 0101 and ask for Dan Hyde.