Skip to main content

VAT: Fraud

Volume 457: debated on Monday 5 March 2007

To ask the Chancellor of the Exchequer how much in VAT repayments has been withheld pending the extended verification process arising from missing trader intra-community fraud investigations. (125216)

The requested information cannot be disclosed as to do so would undermine the measures introduced by HM Revenue and Customs to counter missing trader intra-community fraud and as such prejudice the assessment and collection of tax.

To ask the Chancellor of the Exchequer how much has been recovered from convictions arising from missing trader intra-community fraud since 2004-05. (125217)

The HMRC Annual Report 2005-06 provided the total amount recovered or frozen in action against persons and companies involved in MTIC fraud, copies of which are available in the House Library.

The HMRC Report 2004-05 did not contain this information and it could be obtained only at disproportionate cost.

To ask the Chancellor of the Exchequer what average length of time investigations took to verify VAT claims which may be affected by missing trader intra-community fraud in the most recent year for which figures are available. (125218)

HM Revenue and Customs does not collate the information requested and would incur disproportionate costs in doing so.

Each case of verification is treated on its own merits, the time taken to reach a decision being that required to fully establish the veracity of the claim. However, if at any time during the verification HM Revenue and Customs identifies that part or the entire claim is unconnected to MTIC fraud and is otherwise valid, HM Revenue and Customs will make prompt repayment of the amount.

The UK courts have, to date, supported HMRC’s policy.