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EU reveals fraud crime plans

Published on 30 Sep 2009 under category: legal

The European Union (EU) has announced plans which aim to reduce fraud crimes.

Proposals from the body centre around value added tax (VAT) frauds which are carried out on a range of goods, with everything from computer chips to greenhouse gas permits targeted.

This refers to crimes which take advantage of EU laws that state that businesses buying items from a provider in their own country must pay VAT and then claim it back from the government.

However, they do not have to pay this if the business is from another EU country.

Carousel fraud crimes have resulted from this, with firms claiming VAT from the government that they have not actually paid.

In a statement, the European Commission commented: "Very recently, several member states have been confronted with carousel fraud related to greenhouse-gas emission allowances."

This has led to the EU proposing that VAT is paid directly to the government, which it says will put an ends to these fraud crimes.

Earlier this week, a former Enron Broadband executive was given a 16-month prison term for wire fraud.

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