Ten People Arrested in Mobile Phone Tax Fraud
The UK's customs officers (HMRC) have arrested 10 people who are accused of buying mobile phones in order to exploit a tax fraud. Arrests were made across the UK, and 20 premises were searched in the co-ordinated dawn raids. Operation Varlet, followed an 18 month investigation into a complicated missing trader VAT fraud, commonly known as "carousel" fraud.
The investigation involved a large scale, complex missing trader intra community (MTIC) VAT fraud involving a sophisticated network of individuals, companies and bank accounts. Those arrested are suspected to be part of a ring of companies that fraudulently traded mobile phones, buying them VAT-free from the continent to supply to businesses in the UK, and then defaulting without paying the VAT due to HMRC.
Euan Stewart, Director of Operations, Criminal Investigation for HMRC said "Missing trader fraud is a sustained attack on HMRC, and tackling it is HMRC's top priority. Today's arrests follow months of painstaking investigative work by dedicated officers. The level of sophistication of these frauds means that our investigations are becoming more complex, but we are committed to working with the Revenue and Customs Prosecutions Office to bring the criminals behind the frauds to justice and to recovering the money stolen from the British Taxpayer. This crime is not victimless; it is organised and causes real harm.""
Posted to the site on 3rd July 2007