VAT fraud cases are among the most document-heavy prosecutions in the criminal courts. They usually involve HMRC, several companies and years of records.
Missing Trader Intra-Community fraud, also called carousel fraud, involves goods passing between traders in different countries so that VAT is charged but never paid over, while a later trader reclaims it. Charges are often conspiracy to cheat the public revenue or cheating the public revenue, and can extend to false invoicing and domestic VAT schemes.
In a criminal case the prosecution must prove dishonesty and participation in the scheme, not just that the trading chain was tainted. That is often where the defence lies, and it depends on a close forensic reading of the documents, bank records and communications.
HMRC investigations can run for years, often begin with search warrants and arrests, and can include restraint orders freezing assets.
Selected results
- London City BondMichael acted for several of the leading successful defendants in what has been described as one of the most significant fraud prosecutions in modern legal history. The case led to the publication of the Butterfield Report, which exposed shortcomings in HM Customs and Excise’s investigative and prosecutorial practices.
- Missing Trader Intra-Community (MTIC) fraudA long-standing specialism, and among the most document-heavy prosecutions brought in this jurisdiction.
Taken from matters the firm has published. Every case turns on its own facts and past results are not a guarantee of any particular outcome.
Questions people ask
What is carousel fraud?
A scheme in which goods move between traders in different countries so that VAT is charged but never paid, with a later trader reclaiming the VAT.
Can I be prosecuted for transactions I did not know were fraudulent?
A criminal conviction needs dishonesty or knowing participation. Whether you had it is usually the central question.
How long do HMRC investigations take?
There is no fixed limit and large MTIC cases often take years from first contact to trial.
Will HMRC freeze my assets?
They can apply for a restraint order during an investigation. It is not a finding of guilt, but early advice can limit its effect.