TARC Masterclass on VAT

VAT Refund Fraud – Strategies, Country Experiences, and Challenges

Katherine Baer, Division Chief, Revenue Administration Division II, International Monetary Fund

Wednesday 21st & Thursday 22nd June 2017

Location: Westminster Suite, Broadway House, Tothill St, London

VAT refund fraud is a global problem, depriving tax administrations of significant revenue and affecting governments’ ability to finance public services. Because the sums of money involved tend to be significant and the related risk of detection are low, fraudsters have targeted VAT refund schemes and, in some cases, have used the proceeds of their crime not only to steal revenue but also to finance other criminal activities.

The masterclass will look at how VAT fund fraud has evolved by studying its evolution in the European Union (EU) following the introduction of the Single Market in 1993 and how fraud schemes have mutated from contrived transactions using goods such as cell phones and computer chips to perpetrate the fraud, to trade in intangible commodities. Similar fraud methods operating in the European Union have also been deployed in non-EU countries by fraudsters to obtain fraudulent VAT refunds. The masterclass will look at examples of these frauds and their impact in selected non-EU countries.

The masterclass will also study a selection of anti-fraud strategies adopted by selected VAT administrations, including the EU strategy, which are designed to combat VAT refund fraud.  The challenges faced by VAT administrations in tackling VAT refund fraud will also be discussed.

A draft copy of the programme is now available.

To register for the masterclass please visit our online store.

For any queries, please contact Irene Rodger (tarc@exeter.ac.uk)