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Combating Crime and VAT Fraud Issues on International Trade

Posted: Jul 5, 2013 at 7:34 am   /   by   /   comments (0)

Each time you buy an item or service, you are actually paying a special tax called Value Added Tax or VAT. This tax allows the government to get additional funds so it can offer more services to the public.

VAT is so important that the penalties for evasion are severe. In other fraud cases, some people actually paid the VAT for items or services that they didn’t even buy. Getting involved in a tax fraud case is a tough situation, which is why you need experienced VAT fraud lawyers to help you.

What is VAT fraud?

Apart from not paying VAT, you can also be found guilty of fraud if your invoice doesn’t reflect the right tax amount. It’s also illegal to charge a higher VAT rate than what the law indicates. Business owners have to charge the right amount of VAT for their items if they don’t want to face tax fraud charges.

Common Types of VAT Fraud in International Trade

There are different types of VAT frauds faced by tax fraud lawyers, as many businesses have tactics to go around this law. Here some of the most common types of VAT fraud cases:

1. Underreported Sales – Some entrepreneurs don’t report their actual sales so they won’t have to pay the corresponding VAT. These traders then ask for more refunds than they deserve.

2. Inflated Refund Claims – This scheme involves traders who acquire fake purchase invoices to get more tax refund from tax authorities at the end of the year. There’s an underground network that creates fake receipts, and many traders buy these invoices for VAT evasion.

3. Non-Existent Traders – Some business owners create fake companies that make fake purchases and sales, so they can file for tax refunds. Many of these fake traders disappear quickly so that government authorities can’t track them.

Your innocence and freedom depends on the manner that you defend yourself against the accusation. Contact experienced fraud lawyers in your area if you need legal assistance and representation.