(2) whether extra resources have been transferred to Missing Trader Intra-Community fraud investigations in order to complete the checks within the appointed time limits.
In response to the rapid increase in: Missing Trader Intra-Community Fraud activity in late 2005 and early 2006, HM Revenue and Customs are actively checking a greater number of claims. Each case of verification is treated on its own merits and, given the extremely complex and highly sophisticated nature of the fraud, involving numerous cross-border transactions within and beyond the European Union as well as checks into a wide range of matters involving companies, their directors, financing and, of course, transactions and associations with other parties, the time taken to reach a decision is that required to fully establish the veracity of the claim. The setting of arbitrary time limits to complete investigations would be counterproductive to establishing the correctness of the transaction chains involved. The UK courts have, to date, supported HMRC’s policy.
HMRC recognises the importance of VAT repayments to legitimate businesses and have deployed an additional 700 staff to ensure that verification of these claims can be; carried out as effectively and efficiently as possible. Also if at any time during the verification they identify that part or the entire claim is unconnected to MTIC fraud and is otherwise valid, they will make prompt repayment of the amount.
Treasury Ministers and officials receive representations, on numerous subjects from a wide range of organisations and individuals in the public and private sectors as part of the process of policy development and delivery. As was the case with previous Administrations, it is not the Government’s practice to provide details of all such representations.