VAT Fraud Mutation, Part 2: CITIBank as a Transition
Document Type
Article
Publication Date
3-14-2016
ISSN
1048-3306
Publisher
Tax Analysts
Language
en-US
Abstract
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 by year-long imprisonment without bail for seven individuals suggest concern at the highest levels. The UK zero-rated CO2 permits on August 1, 2009 because of the Dosanjh case.
However, with Dosanjh out of commission who would step up and be the new supplier of CO2 permits if the “blue chip” companies that Dosanjh sold to were interested in continuing to purchase from fraudsters? Based on the size of its purchases from Dosanjh, CITIBank was the natural target for HMRC’s follow-up surveillance. The CITIBank case explores thee suppliers.
This part argues that the CITIBank is transitional. We are moving from Dosanhj’s push-type (or externally controlled) MTIC fraud, to a sustained pull-type (or economically controlled) MTIC fraud. The first of these mature pull-type frauds is considered in the final part of this paper, the Deutsche Bank case. The Deutsche Bank case cannot be fully understood without grasping what occurred in the CITIBank transition.
Recommended Citation
Richard T. Ainsworth,
VAT Fraud Mutation, Part 2: CITIBank as a Transition
,
in
81
Tax Notes International
971
(2016).
Available at:
https://scholarship.law.bu.edu/faculty_scholarship/2841
Working paper version
Please note the file available on SSRN may not be the final published version of this work.
Comments
The first article in this series, VAT Fraud Mutation, Part 1: "Push" Missing Trade Fraud and Dosanjh, 81 Tax Note International 535, can be read at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2770076.