HMRCs New VAT Taskforces
24 October 2013
HMRC has announced two new taskforces - in Scotland and Northern Ireland - dealing with fraudulent VAT reclaims.
This move is due to an increased risk of fraudulent VAT repayment claims in those areas and businesses being set up solely to illegally and falsely reclaim VAT. The taskforces are targeting both individuals and businesses and is set to bring in £7m, HMRC estimated.Since 2010, HMRC’s taskforces have focused on tax evasion in sectors of the economy ranging from medics and plumbers to restaurant owners and door-to-door sales people.
More than £90m has been collected by the taskforces since 2011-12. The Revenue expects to bring in over £90m a year from taskforces launched over the next three years.
HMRC’s Jennie Granger, director general of enforcement and compliance, said: “'It is really important that we level the playing field by stopping tax cheats.
"Deliberately falsifying VAT records can lead to imprisonment. Our message is: do the right thing. If you haven't already, come clean now. If you don't, we will find you, investigate you and, not only could you face a heavy fine, but you may face a criminal prosecution as well.”