HMRC has reported the arrest of an individual in the West
Midlands as part of its investigation into a suspected £495,000 coronavirus job
retention scheme fraud. The individual was arrested on suspicion of cheating
the public revenue, fraud by false representation, VAT evasion and money
laundering, as part of a wider HMRC investigation into an alleged multi-million
pound tax fraud.
Richard Las, acting director of HMRC’s Fraud Investigation
Service, reminded employers that the CJRS was put in place to protect jobs and
that fraudulent claims deprive public services of essential funding, noting
that ‘anyone who is concerned that their employer might be abusing the scheme
should report
it to HMRC online’.
Commenting on the action taken by HMRC, Jessica Parker, partner
and specialist criminal litigator at Corker Binning, said that ‘HMRC are
sending a clear message to those who are tempted to take advantage of the
Chancellor’s furlough package. It is likely that this action will be followed
by a publicised amnesty for those who may have claimed furlough payments
fraudulently and HMRC will expect that today’s arrest will encourage those who
otherwise may have ‘waited it out’ to come forwards. Furlough fraud is rumoured
to have been conducted on a large scale and HMRC’s enforcement division will be
planning a significant programme to counter it.’
Schedule 16 to what will be FA 2020 will give HMRC powers to
claw back CJRS payments made to businesses not entitled to received them, or
which have not been used to pay employment costs. Richard Morley, partner at
BDO, noted that the Finance Act ‘will trigger the start of the 90-day period
for businesses to notify HMRC that they received furlough scheme payments which
they were not entitled to receive or retain. Given that HMRC has clearly
started to actively follow up on tip-offs and potentially incorrect claims,
instead of waiting for the start of the 90-day notification period, businesses
and individuals should start reviewing their furlough claims now.’
HMRC has reported the arrest of an individual in the West
Midlands as part of its investigation into a suspected £495,000 coronavirus job
retention scheme fraud. The individual was arrested on suspicion of cheating
the public revenue, fraud by false representation, VAT evasion and money
laundering, as part of a wider HMRC investigation into an alleged multi-million
pound tax fraud.
Richard Las, acting director of HMRC’s Fraud Investigation
Service, reminded employers that the CJRS was put in place to protect jobs and
that fraudulent claims deprive public services of essential funding, noting
that ‘anyone who is concerned that their employer might be abusing the scheme
should report
it to HMRC online’.
Commenting on the action taken by HMRC, Jessica Parker, partner
and specialist criminal litigator at Corker Binning, said that ‘HMRC are
sending a clear message to those who are tempted to take advantage of the
Chancellor’s furlough package. It is likely that this action will be followed
by a publicised amnesty for those who may have claimed furlough payments
fraudulently and HMRC will expect that today’s arrest will encourage those who
otherwise may have ‘waited it out’ to come forwards. Furlough fraud is rumoured
to have been conducted on a large scale and HMRC’s enforcement division will be
planning a significant programme to counter it.’
Schedule 16 to what will be FA 2020 will give HMRC powers to
claw back CJRS payments made to businesses not entitled to received them, or
which have not been used to pay employment costs. Richard Morley, partner at
BDO, noted that the Finance Act ‘will trigger the start of the 90-day period
for businesses to notify HMRC that they received furlough scheme payments which
they were not entitled to receive or retain. Given that HMRC has clearly
started to actively follow up on tip-offs and potentially incorrect claims,
instead of waiting for the start of the 90-day notification period, businesses
and individuals should start reviewing their furlough claims now.’
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