Missing trader fraud, also called missing trader intra-community fraud or MTIC fraud, is the non-payment of value added tax to a government by fraudsters who exploit VAT rules, particularly the European Union rule that the movement of goods between member states is VAT-free; the fraudster charges VAT on a sale but absconds with the collected amount instead of remitting it to the tax authority, becoming the missing trader the offense is named for. A prevalent variant, carousel fraud, moves the same VAT-liable goods and their associated tax repeatedly among a chain of companies across multiple jurisdictions in a pattern that resembles a carousel, so that the fraud can be repeated on the same goods more than once.
Facts
Elements of OffenseNon-payment of VAT to a government by a trader who charges VAT on a sale and absconds with it 1 Jurisdiction VariationMost common in the European Union; also seen in other jurisdictions with a value-added tax, such as Singapore 1 Violent or Non-Violent Classification
Offense GradeSerious or Indictable Offense 1 Connections
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Sources
1. Missing trader fraud (Wikipedia)
Lead paragraph, first sentence
involves the non-payment of Value Added Tax (VAT) to a government by fraudsters who exploit VAT rules
VAT rules
it is also seen in other jurisdictions that have a value-added tax, such as Singapore
Lead paragraph
Missing trader fraud (also called missing trader intra-community fraud or MTIC fraud) involves the non-payment of Value Added Tax (VAT) to a government by fraudsters who exploit VAT rules, most commonly the European Union VAT rules which provide that the movement of goods between member states is
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