Carbon trading fraud defence solicitors

Carbon trading fraud

Fraudulent activity in this area works in a similar way to the MTIC or carousel frauds which has been historically based in the telecommunications industry or computer components industry. The fraud begins by a dishonest trader registering to be able to trade carbon permits in the European Union Trading System. The trader then starts buying carbon permits in another EU country free of VAT and sells them on inclusive of VAT. That trader then disappears with accounting for the VAT.

In more sophisticated scams the traders act in the same way as MTIC/carousel frauds are operated and send the carbon permits round in a circuit between various countries reclaiming the VAT repeatedly. It has been the different tax regimes across the EU that has allowed this to happen. The HMRC have been now added similar measures such as the reverse charge to tackle this area of fraud. The UK also in 2009 as a temporary measure introduced zero rated VAT for carbon permits.

Fraud investigations

The investigations into this fraud are far reaching and cover many countries. Although measures are in place to try and tackle this arrests and prosecutions will still be happening for activities before those measures were in place. As such it is important to be aware that should you be investigated for an offence of this nature that you should seek specialist advice immediately. We have considerable expertise in this area.

Our experienced team of serious fraud lawyers has the expertise and knowledge to look at the required level of detail to defend you. Contact our expert fraud solicitors on 01616 966 229 or complete our online enquiry form.