Tougher fines urged for VAT cheats

Tougher penalties are needed to combat the £11billion-a-year cost of VAT fraud, MPs said today.

Despite the “staggering” level of fraud, the Commons public accounts committee found Customs and Excise only prosecuted 90 VAT fraud cases a year. MPs said the number of investigations should be increased and tougher fines introduced. It also said customs officers should name and shame accountants and tax advisers involved in VAT cheating.

“A staggering £11billion of VAT is being pocketed by fraudsters and cheats, rather than being collected for the public purse,” said committee