HMRC discovers 11,000 Chinese firms registered at one address
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HM Revenue & Customs has admitted to the Commons public accounts committee that it had allowed 11,000 Chinese firms to register for VAT at a single residential flat in Wales without verifying who lived there.
The scam was discovered after the flat owner received thousands of letters demanding more than £500,000 in VAT. Over 2,350 of the registered companies owe money to the tax authority, but HMRC has not yet found evidence of fraud or fraudulent intent, The Times reports.
The case highlights “systemic weaknesses in VAT registration and detection processes,” according to Meg Hillier, the committee’s chairwoman.
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