Every VAT/GST allows missing trader fraud. The fraud is simple, and can be simply prevented (with technology). The fraud arises when a business makes a purchase without paying VAT, collects VAT on an onward sale, and then “disappears” without remitting the tax. Missing trader fraud is common...

The VAT gap, both on the European Union scale and that of particular member states (though not all of them) appeals to the imagination and awakens many extreme emotions. For it is difficult to accept that the level is so significant, and – what is more – in recent years it has narrowed quite...

At the World Economic Forum more than 800 executive and technology experts were asked when they thought a particular “tipping point” would be reached – when would we see a government collect tax with blockchain? The agreed date was 2023 (on average). A full 73% of the respondents however,...

CO2 MTIC fraud is an exceedingly fast moving, quickly mutating fraud. Litigation has moved rapidly from the UK to Germany. The litigation line stretches from Dosanjh's £39m (€41,039,261) fraud in the first three months of 2009 to CITIBank's £9,893,821 fraud in July 2009, and then jumps to...

This three-part paper considers three MTIC fraud cases in CO2 permits, the Dosanjh, CITIBank, and Deutsche Bank cases. Dosanjh was convicted of stealing £39m from January 20 through May 6, 2009, CITIBank is presently responding to allegations that it improperly claimed £9,893,821 in input...

The first part of this paper considered traditional MTIC fraud (push MTIC) in CO2 permits. The fraud in that case (Dosanjh) was swiftly put down. The traditional design of the fraud did not mean it was “garden variety.” Sweeping arrests in the early morning hours of August 19, 2009, followed...

The article aims to estimate the VAT Gap amount development from 2010 to 2016 in the Czech Republic. The methodology of the VAT Gap identification was based on the indirect top-down method for each year of the reporting period, using the authors’ calculation of the weighted average VAT rate in...

In a May 31, 2006 Communication to the Council, the European Parliament, and the European Economic and Social Committee, the European Commission indicated a need to develop a coordinated strategy to improve the fight against fiscal fraud [COM (2006) 254 final]. Although the Communication...

In recent decades, the Member States of the European Union have registered a huge increase of spectacular and highly organized VAT fraud. Whilst the tax authorities are fighting hard to stop this phenomenon, fraud has become an established industry. In this article, the author analyses several...

This Study contains Value Added Tax (VAT) Gap estimates for 2018, fast estimates using a simplified methodology for 2019, the year immediately preceding the analysis, and includes revised estimates for 2014-2017. It also includes the updated and extended results of the econometric analysis of...