So-called
"carousel" VAT fraud was said to remain the
biggest problem.
Under
carousel fraud, criminals claim for the repayment of VAT
that was never paid in the first place on goods imported
and exported to and from other European Union nations.
'Extremely
concerning'
In
recent years mobile phone and computer chips have been two
of the main items used by carousel fraudsters.
Last
June the government introduced changes to the way VAT is
charged on mobile phones and computer chips to try to
reduce the extent of this fraud.
The
report found that fraud using identity theft also remained
a serious problem.
"Levels
of fraud continue to remain disturbingly high," said
Hitesh Patel, partner at KPMG Forensic.
"The
sophistication of organised fraud in the UK is certainly
extremely concerning.
"More
fraud cases have been coming to court in recent years than
previously, but one fears that this is just the tip of the
iceberg."
