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Vat Fraud & Triangulation, Richard Thompson Ainsworth
Vat Fraud & Triangulation, Richard Thompson Ainsworth
Faculty Scholarship
Missing trader intra-community (MTIC) fraud has received a lot of domestic enforcement attention. True cross border enforcement (joint or coordinated multi-Member State audit) has been limited. There are signs that this is changing as the Member States become more aggressive in their search for revenue.
Along with this shift in enforcement focus, triangulation analysis has moved from being an interesting aspect of the MTIC fraud structure to the central element in a larger understanding of how a fraudster thinks and how he carries out his fraud. We are coming to understand that triangulations are not only the mechanism of how …
Vat Fraud In The Customer Chain - The German Perfect Storm Cases, Richard Thompson Ainsworth
Vat Fraud In The Customer Chain - The German Perfect Storm Cases, Richard Thompson Ainsworth
Faculty Scholarship
German civil and criminal courts have not always agreed over whether to allow a taxpayer to zero-rate intra-Community supplies when the taxpayer making the supply knew (or should have known) that his buyer in the other Member State intended to fraudulently evade VAT as a missing trader. This is no longer the case. Zero-rating of intra-community supplies is now being denied in German civil and criminal courts.
This paper considers how far Germany appears to be extending the law in this area. In 2011 six cases were heard by the Bundesfinanzhof (German Supreme Tax Court) that demonstrate both (a) the …
A Perfect Storm In The Eu Vat: Kittel, 'R' And Marc, Richard Thompson Ainsworth
A Perfect Storm In The Eu Vat: Kittel, 'R' And Marc, Richard Thompson Ainsworth
Faculty Scholarship
EU VAT authorities are close to turning the tables on missing traders. For many years organized fraudsters have been stealing huge amounts of VAT on the domestic re-sale of exempt cross-border supplies. Losses have been enormous whether the transactions are in goods (notably cell phones and computer chips) or in tradable services (CO2 permits and VoIP). No market has been safe from the fraudsters.
Answers are developing, but these answers may look more like Armageddon than measured enforcement. Solutions are so draconian, and so all-encompassing that very few intra-community traders will feel safe from the gathering storm. The situation is …