HMRC 'tackles VAT fraud'

A number of business owners have been detained for questioning following a "dawn operation" by HM Revenue and Customs.

The searches, of premises in Bradford, Bolton, Bury, London and Preston, were carried out in "relation to suspected VAT offences amounting to over £18 million".

Commenting on the raids, HMRC assistant director of criminal offences in the north-west Martin Greening said: "Tackling VAT fraud is one of HMRC's top priorities. We have a duty to stop money being diverted and stolen from the nation in what are often large scale and ruthless attacks on the VAT system."

Mr Greening added that the arrests were made after a lengthily and complex investigation, involving a number of companies which purchased goods VAT-free from the EU and them sold them on to British businesses.

According to a report in the Guardian, VAT fraud cost the Treasury around £5 billion in 2006.

Value Added Tax information can be found here