Serious VAT & Tax Fraud and Offences
VAT and tax fraud are serious offences that can have severe consequences for individuals and businesses. These crimes involve deliberate attempts to evade or avoid paying taxes, often through fraudulent means.
At AM International Solicitors, we understand the challenges individuals face with VAT and tax offences. We specialise in defending individuals and businesses accused of serious VAT and tax fraud offences. Our team focuses on providing strong legal defence for those facing allegations of VAT fraud, money laundering (MOL), and other serious financial crimes.
Types of VAT and Tax Fraud
VAT Fraud
VAT fraud involves deceptive practices intended to reduce or avoid paying VAT. Here are some common types:
- False Declarations of VAT: This occurs when a business intentionally provides incorrect information on their VAT returns to pay less tax or claim refunds they are not entitled to. Examples include inflating input VAT or underreporting output VAT.
- Missing VAT Returns: Failing to submit VAT returns is another form of fraud. Some businesses may deliberately not file returns to conceal their true tax liability.
- VAT Carousel Fraud: Also known as “missing trader” or “MTIC” fraud, this is a sophisticated scheme involving the repeated trading of goods across borders within the EU. Fraudsters charge VAT on goods sold to another company but then disappear without paying the VAT to the tax authorities.
- Missing Trader Intra-Community (MTIC) Fraud: A variation of VAT carousel fraud, MTIC fraud involves importing goods VAT-free from another EU country and then selling them domestically with VAT added. The fraudster pockets the VAT instead of paying it to the tax authorities.
Tax Evasion
Tax evasion refers to illegal practices used to avoid paying taxes. It can take several forms:
- Failing to Declare Income or Gains: Individuals or businesses may hide certain sources of income or gains from the tax authorities to reduce their tax liability. This can include not declaring earnings from a side business or investment income.
- Underreporting Income: Some may report only a portion of their actual income, such as underestimating sales figures or reducing the amount of taxable income through false records.
- Claiming False Deductions or Allowances: This involves providing inaccurate information about deductions or allowances on tax returns, such as inflating business expenses or claiming personal expenses as business costs.
- Offshore Tax Havens: Some individuals or businesses use offshore accounts or trusts to hide income and assets, thereby evading tax. These funds are often placed in jurisdictions with low tax rates or strict banking secrecy laws, making them difficult for tax authorities to track.
Consequences of VAT and Tax Fraud
Being accused of VAT or tax fraud carries serious consequences that can have long-lasting impacts on both individuals and businesses. It’s important to understand the potential outcomes if you are found guilty of such offences.
- Financial Penalties
- Interest Charges
- Criminal Prosecution
- Reputational Damage
Our Approach to High-Profile VAT and Tax Fraud Defence
When you’re accused of VAT or tax fraud, it’s essential to have a strong legal team on your side. Our team is experienced in handling high-profile cases involving serious fraud and white-collar crime. These cases often involve complex financial transactions and require a deep understanding of both the law and financial practices.
We work closely with experienced forensic accountants who assist in investigating and analysing financial data. These experts provide key pieces of evidence and insights to support your defence. Their expertise helps us build a compelling case to protect your rights and interests. We have a proven track record of defending clients in such matters, ensuring that they receive a fair trial and the best possible outcome.
Leading Prosecuting Authorities
Our team has extensive experience in handling cases brought by a wide range of UK prosecuting authorities, including:
HM Revenue & Customs (HMRC): We defend clients accused of VAT fraud, tax evasion, and other offences investigated by HMRC. These cases often involve detailed scrutiny of financial records and complex tax laws, requiring a deep understanding of both legal and financial matters.
Serious Fraud Office (SFO): The SFO deals with the most serious cases of fraud, bribery, and corruption. We have successfully defended clients in high-profile investigations and prosecutions led by the SFO, challenging the evidence and working to secure the best possible outcome.
Financial Conduct Authority (FCA): Accusations of financial misconduct, insider trading, or regulatory breaches fall under the FCA’s jurisdiction. Our team is experienced in managing the regulatory environment and defending against FCA investigations.
Department for Business, Energy & Industrial Strategy (BEIS): We represent clients in cases involving corporate governance issues, business misconduct, and breaches of business regulations investigated by BEIS.
Trading Standards: We provide legal defence for businesses and individuals facing allegations of unfair trading practices, product safety violations, and other offences investigated by Trading Standards.
Crown Prosecution Service (CPS): The CPS prosecutes criminal cases investigated by the police and other agencies. We are skilled in defending against a wide range of criminal charges brought by the CPS, from fraud to serious organised crime.
Serious Organised Crime Agency (SOCA): Now part of the National Crime Agency (NCA), SOCA dealt with serious organised crime, including money laundering and drug trafficking. We continue to defend clients against these serious charges under the NCA’s oversight.
National Crime Agency (NCA): The NCA investigates serious and organised crime, including financial crime and cybercrime. Our solicitors have a track record of defending clients against NCA investigations, focusing on dismantling complex cases and protecting your rights.
UK Border Agency: For cases involving customs offences, smuggling, and other border-related crimes, we offer expert defence against investigations by the UK Border Agency.
Insolvency Service: We represent clients in cases involving allegations of misconduct in insolvency, such as wrongful trading or fraudulent trading, investigated by the Insolvency Service.
Competition & Markets Authority (CMA): Accusations of anti-competitive practices and breaches of competition law fall under the CMA’s purview. We defend clients in cases involving allegations of cartel behaviour, abuse of market dominance, and other competition law offences.
Local Authorities: We handle cases brought by local authorities, including those related to environmental offences, planning breaches, and health and safety violations.
National Investigation Service (NATIS): We provide defence against investigations conducted by NATIS, which focuses on tackling serious fraud, bribery, and corruption within public and private sectors.
Companies House Investigations: We defend clients in cases involving allegations of corporate wrongdoing, such as false accounting, failure to file accurate returns, or other breaches of company law.
Get in Touch
If you are facing accusations of VAT or tax fraud, don’t delay in seeking expert legal advice.
Contact AM International Solicitors today to discuss how we can help defend your rights and achieve the best possible outcome for your case.
