What to do if you discover VAT fraud: making a submission to the VAT Fraud Team: making a submission: Mecsek cases
If you wish to apply the Mecsek principle (VATF43230) you will need to make a submission to the (This content has been withheld because of exemptions in the Freedom of Information Act 2000) using a (This content has been withheld because of exemptions in the Freedom of Information Act 2000) . If you are in Specialist Investigation (SI) the PG1 should be sent to the Technical and Appeals Team for comment, otherwise please follow the procedure set out in (This content has been withheld because of exemptions in the Freedom of Information Act 2000)
When making the submission you will need to ensure that the following points are fully covered:
- the name and VAT number of the taxable person’s supplier(s);
- the name, VAT number and location (address) of the taxable person’s customer(s);
- if the taxable person operates more than one business model (i.e. he makes retail sales as well as wholesale) you should provide details of any distinct differences in the way the different sides of the business are run, e.g. stock operation (booking in procedures, storage etc), due diligence procedures, payment arrangements, contractual terms, advertising and promotion etc. Further advice can be found in VATF32000;
- an explanation of how the taxable person’s customer(s) committed a tax fraud (you should make reference to as much information from the SCAC report as possible);
- details of any evidence held to show that the transaction(s) took place between the taxable person and the supplier and the taxable person and the customer (e.g. invoices, purchase orders, emails etc);
- details of payments made/received between the parties involved, including details of the bank accounts held;
- if the transaction(s) involved goods, details of how and where the goods were transported, including who was used to actually transport the goods;
- how the taxable person identified / made contact with his supplier(s) and customer(s);
- whether there were any contractual arrangements and insurance in place with the taxable person’s supplier(s) and customer(s) prior to the date on which the transactions occurred;
- whether any warnings were provided prior to the date on which the transactions occurred regarding VAT fraud;
- whether any checks / risk assessments were undertaken by the taxable person on his supplier(s) and customer(s) prior to the date on which the transactions occurred.
The above list is not exhaustive. Please feel free to include other details you think might be relevant as the more information you can provide the better the case for denying zero rating.