Supplementary letter by Rt Hon Dawn Primarolo
MP, Paymaster General, HM Treasury
INQUIRY INTO MISSING TRADER FRAUD
Thank you for your letter of 7 February, requesting
some further evidence following my appearance before the Committee
on 6 February. I offered to provide the following information:
— Data demonstrating the effectiveness
of HMRC's strengthened operational strategy for tackling Missing
Trader Infra-Community (MTIC) VAT fraud;
— The staff numbers currently deployed
on that strategy; and
— Details of our work with the authorities
in the United Arab Emirates/Dubai.
You also asked for information about HMRC's
MTIC fraud estimates, which are published each year alongside
the Pre-Budget Report; and about any consultation with businesses
on the proposed reforms to the EU VAT system to counter cross-border
fraud. In addition, I have provided some further information on
the UK's involvement with the Eurocanet project, and the Government's
response to two questions that were not covered on the day:
— Improvements to the IT infrastructure
used to exchange information with our European partners; and
— The use of a "trusted third
party" along the lines of the Streamlined Sales Tax model
used in the USA.
All of the above information is annexed to this
letter. I hope that it will assist the Committee in preparing
its report on Missing Trader fraud.
Finally, as I mentioned when we spoke after
the hearing, if the Committee would find it helpful, HMRC would
be able to provide a confidential oral briefing on the criminal
investigation activity relating to the First Curacao International
Bank, and subsequent money flows. This would need to be done in
a closed session, and with the clear understanding that the material
divulged could not be used in any subsequent publication. If you
or other members of the Committee wish to receive such briefing,
may I suggest that your Clerk contacts Roy Clark, the Director,
Criminal Investigation in HMRC.
27 February 2007
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