VAT crime has cost the Treasury millions and it is now aiming to fight back with a new clause in the Finance Act, which could have a profound impact on your business.
Advances in information technology, converging markets, changes in customer demand and companies seeking to gain competitive advantages have aided an increase in globalisation. Explains James Earp, a partner in Grant Thornton’s Fraud Insolvency Division: “While there have been benefits associated with cross-border trading, the ease with which resources can be used to facilitate trading remotely has created a surge in fraudulent activities. The standardisation of products – in particular computers and mobile phones – and the ever-increasing demand for such products has been instrumental in making carousel fraud a highly lucrative business.”
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