Kangs Solicitors represent a client in a trial commencing this week at Newcastle Crown Court which is estimated set to last for six to eight weeks.
The Charge of Alleged Fraud | Kangs VAT Fraud Solicitors
Our client is charged with conspiracy to cheat the revenue arising from trade in alcohol by wholesale traders and cash and carry businesses throughout the UK.
Our client purchased stock which, originally, had been imported by traders and sold on in a manner whereby properly due VAT has not been paid to HMRC.
HMRC Allegations of Alleged Fraud | Kangs VAT Fraud Defence Team
Our client employed the services of an accountant and VAT returns were submitted but, irrespective of this, serious charges are being pursued by HMRC which alleges that the existence of traditional elements of a Missing Trader Intra Community Fraud suggest the existence of a conspiracy to commit fraud.
Some of these elements are:
- innocent companies have had their VAT numbers stolen from them, or ‘hi-jacked’, and used fraudulently,
- numerous third party payments have been made in circumstances where the commercial involvement of those third party recipients cannot be justified,
- excessive and unjustifiable numbers of cash payments have been made,
- companies within the circle of trade have effectively ‘disappeared’ in that they have ceased to trade, having received VAT repayments to which they were not entitled,
- trading was orchestrated in a fashion designed to create the impression that those companies involved at the end of the trading chain had exported stock, thereby enabling them to submit large VAT Repayment Claims.
- deficiencies in commercial documentation suggest that not all of the stock traded on the invoices and referred to on the VAT Returns actually existed.
VAT Liability Consequences | Kangs VAT Fraud team
Our client company found itself facing substantial VAT debts.
Any trader can become liable for VAT owed by others involved in another part of a trading chain if it can be shown they knew or should have known that those others were trading fraudulently.
How We Can Help | Kangs Pro-active Fraud Avoidance Solicitors
There are ways to protect against being drawn into situations resulting in accusations of VAT and other financial fraud.
We at Kangs Solicitors have a very experienced team available to help you with all aspects of VAT and HMRC investigation.
Who Can I contact | Expert VAT Solicitors
If you are concerned about any issues similar to the above, our team can be contacted through either of the following: