Post on 31-Mar-2015
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Seminar 29 Januari 2008VAT & Customs Fraud
Stichting Europese Fiscale Studieswenst u van harte welkom
Deze presentatie is na afloop van het seminar te downloaden op onze website:
Uw dagvoorzitter:Prof. dr. H.A. KogelsErasmus Universiteit Rotterdam
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Seminar 29 Januari 2008VAT & Customs Fraud
Alexander WiedowEuropean Commission, Director for indirect taxation and tax administration
Customs fraud and VAT fraud
Similar or different?
Or both?
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Seminar 29 Januari 2008VAT & Customs Fraud
Customs fraud: financial aspect (pay less)
(classification, preferential origin certificates etc)
gain market access (specific authorisations, quota etc)
avoid standards, health- or security legislation
(counterfeit, dangerous goods etc)
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Seminar 29 Januari 2008VAT & Customs Fraud
Crucial concepts:
Security related issues (incl. counterfeit): either detected on importation or damage is done
Financial aspects: similar to fiscal aspects as ex post control (audits) possible but competitive disadvantage for others difficult to repair
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Seminar 29 Januari 2008VAT & Customs Fraud
Continuously growing figures of importation (80M declaration in 2006) no perfect control at entry possible.
Possible long term solutions: • risk management with priority given to security• single window to bundle information and various
controls• fiscal issues: in addition audits and elimination of
incoherent tariffs
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Seminar 29 Januari 2008VAT & Customs Fraud
VAT shortfalls “missing trader” fraud cheating on deductions disappearing without handing over
VAT collected to Fisc insolvencies? fake exports black economy
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Seminar 29 Januari 2008VAT & Customs Fraud
Make system more robust but how? more obligations on business to allow
better check of more complete info? link payments and deduction? forget invoices as basis for deduction? tax intra EC-supplies (at departure or
arrival)? general reverse charge? reinforce customs procedure (export) reinforce after import the follow up of the
circulation of the goods ?
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Seminar 29 Januari 2008VAT & Customs Fraud
Just improve working of current system? by increasing administrative cooperation
(EU agency)? better administrations (better risk
management, better/quicker control)? partnerships with legitimate business
(label of trust for active co-operation)? more harmonisation also of operational
issues (VAT identification, control rhythm etc)?
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Seminar 29 Januari 2008VAT & Customs Fraud
Ferdinand RaudPersonal Mission: MMWOPS
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Seminar 29 Januari 2008VAT & Customs Fraud
Make Money
While Other People Sleep
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Seminar 29 Januari 2008VAT & Customs Fraud
Henk WildeboerCorporate Fiscal, Philips International BV
Consequences
for legitimate business
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Seminar 29 Januari 2008VAT & Customs Fraud
Subjects
• VAT fraud– Types of revenues loss
• Whose issue?
• Consequences for legitimate business
• How to combat fraud?
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Seminar 29 Januari 2008VAT & Customs Fraud
VAT FRAUDTypes of revenue loss:
• Bankruptcy – on purpose– because of market developments
• Usual black economy • Missing trader
– VAT is charged but not reported/paid• Carrousel fraud
– Fake “exports”
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Seminar 29 Januari 2008VAT & Customs Fraud
VAT Fraud: Whats new?
The current missing trader fraud
and carrousel fraud is
pan European
and
“very well organized”
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Seminar 29 Januari 2008VAT & Customs Fraud
Whose issue?
This is not only a
government and/or business issue!
This is a society issue!
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Seminar 29 Januari 2008VAT & Customs Fraud
Consequences for legitimate business• Fraud leads to
– market distortions : no level playing field– abuse of goods and brand : brand image
• Create awareness to avoid to get involved
• Anti fraud legislation:– Reverse charge in UK : system changes!– Joint and several liability : uncertainty! Fair?– More reporting, change of the VAT system …………??
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Seminar 29 Januari 2008VAT & Customs Fraud
How to combat fraud?
1. Business should report as much as possible?
2. Change the system of VAT?
3. Government should perform targeted audits based upon risk management?
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Seminar 29 Januari 2008VAT & Customs Fraud
VAT fraud: how to continue?
• Create trust, relations and partnerships with all the stakeholders in the (EU) society.
• Improve information/knowledge management e.g.:– Information is with the supplier, the customer, the banks, the advisors,
the transport companies, forwarders etc. etc. – Improve VIES
• for government a tool for a better risk management approach• for business a tool to rely on (SAFE HARBOUR)
– Better administrative cooperation (proper exchange and use of relevant information)
– “TAXinterpol”?
• Proper resources
• Audits based upon risk management
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Seminar 29 Januari 2008VAT & Customs Fraud
Pauze
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Seminar 29 Januari 2008VAT & Customs Fraud
Redmar WolfBaker & McKenzie
Case LawStruggling with carousel fraud
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Seminar 29 Januari 2008VAT & Customs Fraud
The first carousel...
customer
supplierexport refund 9%
import levy 4%intermediary
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Seminar 29 Januari 2008VAT & Customs Fraud
Export refund > levy on import
• creating transactions to exploit difference
• Dutch court rejects export refund – fraus legis (1968)
• ECJ rejects export refund - abuse (Emsland-Stärke GmbH, C-110/99, 2000)
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Seminar 29 Januari 2008VAT & Customs Fraud
The goods…
0% VAT
0% VAT
19% VAT
MT a.k.a. ploffer
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Seminar 29 Januari 2008VAT & Customs Fraud
The VAT...
Tax Man
Refund?
ringmaster on the beach
MT a.k.a. ploffer
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Seminar 29 Januari 2008VAT & Customs Fraud
Challenge the refund
• bubble memory boards - Benelux(1988-1992)
• fictitious transactions – schijnhandeling
• proof of awareness
• fraus legis? – no tax profit; transactions do not lower the tax due (BNB 1998/35 and BNB 1998/36)
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Seminar 29 Januari 2008VAT & Customs Fraud
Challenge the refund
• formalities, invoicing requirements
• supplier does not exist...
• if ‘well’ structured, refund must be paid out
• 2003: introduction of joint and several liability
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Seminar 29 Januari 2008VAT & Customs Fraud
Consultation of ECJ
• transactions within the carousel lack economic purpose (UK)
• transactions with MT are void (Belgium)
• joint and several liability EU proof?
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Seminar 29 Januari 2008VAT & Customs Fraud
Consultation of ECJ
• Bond House / Optigen / Fulcrum 12 January 2006
• FTI11 May 2006
• Kittel / Recolta6 July 2006
• Teleos & Colleé & Twoh27 September 2007
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Seminar 29 Januari 2008VAT & Customs Fraud
Optigen / Bond House/Fulcrum
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Seminar 29 Januari 2008VAT & Customs Fraud
Goods news for traders...
• transactions in carousel are not outside scope vat
• right to deduct prevails, even when agreement is legally void
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Seminar 29 Januari 2008VAT & Customs Fraud
ECJ offers a certain protection…
… only for traders who take every precaution which could reasonably be required of them to ensure that their transactions are not connected with fraud, be it the fraudulent evasion of VAT or other fraud
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Seminar 29 Januari 2008VAT & Customs Fraud
Goods news for customs...
• know or should have known about fraud... no refund
• based on objective factors
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Seminar 29 Januari 2008VAT & Customs Fraud
ECJ on activities of missing trader...
the objective criteria which form the basis of the concepts of ‘supply of goods effected by a taxable person acting as such’ and ‘economic activity’ are not met where tax is evaded by the taxable person himself
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Seminar 29 Januari 2008VAT & Customs Fraud
Refund / zero rate
every precaution...
does not know or should have known...every
precaution?
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Seminar 29 Januari 2008VAT & Customs Fraud
Carla van RijnTax Authorities, FIOD-ECD
VAT Carrousel Fraud
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Seminar 29 Januari 2008VAT & Customs Fraud
A(GB)
B(NL)
C(NL)
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Seminar 29 Januari 2008VAT & Customs Fraud
We fight VAT-fraud
Fraudsters adjust and change their
strategy
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Seminar 29 Januari 2008VAT & Customs Fraud
A C
B
D
Nederland
EU-lidstaatICL0%
ICV +-/-
ICV + -/-
ICL0%
BL +
BL +
-/-
-/-
geen aangifte
geen afdracht
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Seminar 29 Januari 2008VAT & Customs Fraud
A (plof)
B
C
D
E
F
G (plof)
H
geen afdracht
ICV
-/-
ICL 0%
EU IEU II
NL
-/-
+
+-/-
-/-
+
-/-
ICL 0%
ICLICV+
ICV
+
geen afdracht
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Seminar 29 Januari 2008VAT & Customs Fraud
A (plof) E
B
0% -/-
C
D
I F (plof)
H (plof) G
NL
EU IEU II
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Seminar 29 Januari 2008VAT & Customs Fraud
Principle Olympic rings
Deliveries from one to the other organisation
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Seminar 29 Januari 2008VAT & Customs Fraud
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Seminar 29 Januari 2008VAT & Customs Fraud
Voor mobiele telefoons.
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Seminar 29 Januari 2008VAT & Customs Fraud
Import GSM goederencode 85252091
0
500.000.000
1.000.000.000
1.500.000.000
2.000.000.000
2.500.000.000
2004 1e half j2005
3ekw art2005
4e kw art2005
totaal2005
Arabische emiraten
Zw itserland
Verenigde Staten
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Seminar 29 Januari 2008VAT & Customs Fraud
Deny zero rate if you do not know
with whom you are trading
Your delivery must be submitted
to ICA in other member state
do not trade with strawmen
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Seminar 29 Januari 2008VAT & Customs Fraud
Kittel en Recolta
Know or should have known
And we will wait for the reaction..
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Seminar 29 Januari 2008VAT & Customs Fraud
Handelsblatt, 03-08-2005Organisierte Kriminalität nutzt Schwächen gezielt aus
Rechnungshof: Leichtes Spiel für Steuerbetrüger
Der Bundesrechnungshof kommt in einem vertraulichen Prüfbericht für das Bundesfinanministerium zu dem
Ergebnis, dass Umsatzsteuerbetrug in groBem Stil im “Rahmen Organisierter Kriminalität und häufig gepaart
mit anderen Delikten begangen wird."
Der 100‑seitige Bericht, der dem Handelsblatt vorliegt, nennt als Beispiele Insidergeschäfte, Anlagebetrug,
Geldwäsche, Verbrauchsteuerhinterziehung und
sogar die Terrorismusfinanzierung
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Seminar 29 Januari 2008VAT & Customs Fraud
Dank u voor uw aandachtHeeft u nog vragen?
Deze beantwoorden wij graag tijdens de borrel
Han Tijnagel
Coördinator TDBHan.tijnagel@europesefiscalestudies.nl
Klaas Meenhorst
Coördinator TDOUKlaas.meenhorst@europesefiscalestudies.nl
Sjoerd Janssen
Coördinator TIBSjoerd.janssen@europesefiscalestudies.nl