MTIC & Carousel Fraud Solicitors
Missing trader, MTIC or Carousel fraud is the theft of VAT from a government from multi-jurisdictional trading where the movement of goods between jurisdictions is VAT free. If you or your business is under investigation or charged with serious fraud then the specialist fraud team of solicitors at Carter Moore can help.
MTIC Fraud & Carousel Fraud Charges
Missing trader or Carousel fraud relates to theft of VAT through multi-jurisdictional trading.
The offences are committed where VAT-free goods are imported from other jurisdictions before charging the price of the goods plus VAT to domestic buyers. The seller will then abscond, collecting the VAT as part of the sale, thus becoming the ‘missing trader’. This process can repeat itself many times, with the goods being sold through numerous companies, each liable to VAT, before being exported. The goods therefore circulate as if in a ‘carousel’.
Carter Moore has been instructed to provide legal representation in serious fraud and white collar crime investigations across Europe.
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Example of Missing Trader Fraud
A trader based in the UK buys a consignment of MP3 players from a company in Spain. The UK trader pays £2,000 for the MP3 players and the consignment is shipped to the UK. There is no VAT on the movement of these goods.
The UK based trader then sells the consignment of MP3 players onto one of his co-conspirators for £2,500 plus VAT. The value of the consignment is £3,000 including 20% VAT.
The second conspirator then sells the consignment onto a third conspirator for £2,750 plus 20% VAT. The third conspirator pays £3,250 including the 20% VAT. This conspirator then sells then consignment of MP3 players onto another company in a different jurisdiction, who may be an innocent party. No VAT is charged on the export and the third conspirator sells the consignment for £3,000.
The conspirators have legitimately made a profit of £1,000. The VAT is due to HMRC. In the Fraud the first business vanishes in the conspiracy, then the other businesses follow suit until the last claim for VAT is made by the company who exported the goods into a different jurisdiction. The company paid VAT on the consignment but exported it without receiving any VAT. This company is therefore able to claim the VAT back from the HMRC.
Our Serious Fraud Defence Services
Instructing Carter Moore to represent you during any MTIC or Carousel fraud investigation means that you instruct a team of specialists, not just a single solicitor.
The team of fraud solicitors have provided legal representation across a wide range of serious fraud investigations:
- Missing Trader fraud
- MTIC fraud
- Carousel fraud
Contact us using the form on this page. Alternatively, speak to us on the phone at 0800 1 444 111 or email us on firstname.lastname@example.org.