In what is emerging as a brand-new sector of twenty-first century white collar crime, officers from Britain’s HM Revenues and Customs (HMRC) arrested seven people in London on Wednesday in a suspected £38 million ($62.6 million) value-added tax fraud in the European market in carbon allowances.
The six men and one woman are believed to be the first people in the country to have made money through a so-called “carousel” Value Added Tax (VAT) fraud involving carbon emissions allowances, or carbon credits.
The suspects allegedly imported large volumes of carbon credits VAT-free from other countries then sold the credits to British businesses, having already marked up the price with VAT. The businesses purchasing the credits would then have been able to claim the VAT back from the British government. But the suspects allegedly never reported that VAT revenue, pocketing it instead.
“Those arrested are believed to be part of an organized crime group operating a network of companies trading large volumes of high-value carbon credits,” British law enforcement officials said, adding that proceeds of the crime “have then been used to finance lavish lifestyles and the purchase of prestige vehicles.”
Carousel fraud, also known as “missing trader fraud” has cost between 2-3 billion pounds in potential tax revenues between 2005-2006, HMRC estimates.
To prevent such fraud schemes the governments of France and The Netherlands have already removed the VAT from carbon credits traded within their countries. Britain followed suit last month.
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That was only a tip of that fraudulent carbon trade iceberg (still much better than nothing…)
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Bastards!
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… and so it begins.
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The fraud in this charade is gonna make Madoff look like a small time hood eventually.
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That was only a tip of that fraudulent carbon trade iceberg (still much better than nothing…)
I wonder why the U.S. newspapers aren’t reporting this?
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How can you add value tax to something that hasn’t any?
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But .. but .. melting the iceberg will make global warming worse!
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carbon trade is fraud anyhow.
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This is bad news for advocates of the American Clean Energy and Security Act (ACES)… just more fodder for Republicans and opponents who aren’t willing to at least try some cap and trade system. Sure, cap and trade might work out badly, but it still also could be very good on the whole.
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No, ice makes things cooler.
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What part of carbon trading ISN’T fraudulent?
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Wellcome to the… next BUBLE! – This time in Chicago Cap Trade.
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The FED and Treasury have incestuous relations; their father? – The CFR!
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