Essentials: Value Added Tax / GST fraud including Missing Trader / Carousel Fraud

VAT etc. fraud generates tens of thousands of millions of euros and other currencies for criminals. Some are organised criminal gangs but others are basically a cottage industry. Carousel fraud and Missing Trader (MTIC) fraud is vast.

Individual

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About this course

Within Europe, fraud relating to Value Added Tax, universally known as VAT, and similar taxes generates thousands of millions of euros in profits for criminal gangs each year at the expense of taxpayers in member states. 

VAT is not unique to the European Union. There are a number of similar taxes around the world, often known as a ″goods and services tax,″ or GST. 

However, some taxes called GST are really simple sales taxes and don’t fit the VAT model. 

In this course, we are concerned with the abuse of the system by criminals. No matter what the tax is called, the abuses are the same because the features of the tax that create the opportunity for the fraud are the same in all the versions of the tax. 

In this course we go back to the basics of VAT to demonstrate exactly how the structure creates the mechanisms which are hugely beneficial to society when used properly – but absolutely open to abuse, and therefore enormous detriment to society, by criminals. 

And we look at how VAT is about to become a problem for anyone who exports to the EU

We answer the following questions: what is it, how is it possible, how is it done and how does it relate to money laundering?

We also look at counter-measures the ultimate solution (a non-examinable discussion document). 

This course attracts Portable CPD (tm) of 8 hours (where recognised) and 35 credits towards the Certificate in Financial Crime Risk and Compliance.

Upon completion of the course and attaining the required pass mark in the examination, users may download a certificate which they can print, add to their CV and/or post to social media. 

Unlimited access: period 12 months.

Course curriculum

  1. 1
    • About this course

    • Status of this course

    • Caveat and Legal

    • Pre-requisite

  2. 2
    • 1.1 Overview

    • 1.2 Four things to remember. No. 1

    • 1.3 Four things to remember. No. 2

    • 1.4 Four Things to remember No. 3

    • 1.5 Four things to remember. No.4

  3. 3
    • 2.1 About VAT, etc.

    • 2.2 Europe is not a country.

    • 2.3 The EU and harmonisation of VAT

    • 2.4 What's in a name?

    • 2.5 Everything was so simple then....

    • 2.6 The Mechanism of VAT.

    • 2.7 How VAT invoicing works.

    • 2.8 Reprise

  4. 4
    • 3.1 Which countries are within the EU's VAT scheme?

    • 3.2 The supply of digital goods

    • 3.3 EU and UK VAT: Deemed Suppliers

    • 3.4 EU VAT Place of Supply Rules and Distance Selling

    • 3.4 How place of supply rules facilitate fraud

  5. 5
    • 4.1 Introduction to VAT, etc. fraud

    • 4.2 The principle facilitator for VAT fraud.

    • 4.3 Carousel and Missing Trader Fraud exploits differentials in tax rates.

  6. 6
    • 5.1 The use of tokens in VAT fraud

    • 5.2 Tokens worth more than their weight in gold.

    • 5.3 The dematerialisation of tokens and the development of Voice Over Internet Protocol as a major vehicle for fraud.

    • 5.4 Criminals never waste a good fraud.

  7. 7
    • Case Studies

    • 6. 1. UK MTIC fraud 2016 : physical goods, wilful blindness and Know Your Customer outside the financial sector

  8. 8
    • The easiest way to abolish tax fraud is to to abolish the tax.

    • Hard questions to those that design VAT.

    • Proposal: a nett gain for Exchequers and a nett cost reduction for businesses.

    • VAT authorities should control the money after refunds, in appropriate cases.

    • Additional controls over refunds in appropriate cases.

    • Governments should know their taxpayer.

  9. 9
    • About this examination

    • Essentials: Value Added Tax / GST including Missing Trader (MTIC) fraud and carousel fraud.