Properties raided in £43m VAT fraud probe

POLICE investigating a suspected £43 million VAT and money laundering fraud have raided properties in Birmingham and Redditch as part of an international operation.

Around 40 officers from HM Revenue and Customs swooped on six addresses across the UK last week, including those in the West Midlands.

The investigation is being led by the Canada Revenue Agency and simultaneous searches took place at three addresses in Ontario.

Documents, computers and mobile phones were seized both in the UK and Canada. It is unclear if any arrests have been made in the UK.

The operation relates to a five-year period in which fraudulent requests for sales tax refunds were identified by Canadian authorities. The Canadian government itself fell victim to a “carousel scheme” – a form of VAT theft.

Paul Fisher, Assistant Director at HMRC’s Fraud Investigation Service, said: “Tax fraud is a threat to public funding across the globe.

“As this operation shows, HMRC regularly work with our international partners to both tackle, and assist others in tackling suspected tax fraud.”

Canadian National Revenue Minister Diane Lebouthillier said: “We are also committed to pursuing fraudulent taxpayers and, with the help of our global partners, bringing them to justice.

“We are taking an active role in ensuring everybody pays their fair share and tax cheats must face consequences for their actions.”