New VAT Taskforce Launched
HMRC has launched a new taskforce to tackle fraudulent claims for VAT repayment in Northern Ireland and Scotland. The activities of this new taskforce are expected to generate around £7 million.
HMRC has said that Scotland and Northern Ireland have recently experienced rising risk levels when it comes to fraudulent VAT repayment claims. This especially involves companies that are being set up purely for the purpose of making false VAT repayment claims.”
Usually, task forces use brief, targeted bursts of activity in industries and geographical areas that are considered high risk. They make visits, both announced and unannounced, to investigate traders and examine their records. In the 2011/2012 financial year, these activities generated more than £90 million.
Jennie Granger HMRC’s Director-General of Enforcement and Compliance, has welcomed the new taskforce. She said: “It is really important that we level the playing field by stopping tax cheats.” She also claimed that this will send out a strong message, encouraging traders to do the right thing.