carousel fraud

noun

1. the practice of importing goods from a country where they are not subject to VAT, selling them with VAT added, then deliberately not paying the VAT to the government

Example Sentences

But he and his accomplices ran a "carousel fraud" scam that involved creating fake business transactions on goods moved between various companies, with the false import and export records used to claim back large sums of VAT.

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All the men are accused of being involved in so-called carousel fraud, which is estimated to have cost the UK £16.5bn in tax revenues between 2005 and 2016.

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Rod Stone, former assistant director of the HM Revenue and Customs organised crime national coordination unit, said fraudsters began consigning goods via Dubai in 2005 in an attempt to undermine the tax authorities’ ability to identify the tell-tale circular movements that indicate carousel fraud.

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The indictment from 2016 stated that Salya had been part of a carousel fraud “gang” that had attempted to defraud the German authorities of €125 in fraudulent tax reclaims via a Dubai companym.

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In carousel fraud, a UK business imports high value goods VAT-free and sells them to a UK company with VAT added.

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