How to Combat Value-Added Tax Refund Fraud
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Summary:
A previous IMF Working Paper on value-added tax (VAT) refunds (WP/07/31, by Keen and Smith) describes the main forms of VAT noncompliance and concludes that VAT is susceptible to evasion and fraud like any other tax. This paper shows the insidious nature and extent of VAT refund fraud in selected EU countries and argues that this type of noncompliance requires tax administrations to adopt a coordinated strategy and deploy a range of countermeasures to combat this threat. Because such fraud is primarily a criminal legal issue, tackling it successfully will require cooperation, both internationally between VAT administrations and nationally between tax authorities and the judiciary. The paper’s focus is primarily on advanced economies in the context of the EU, but many of the recommendations are applicable to emerging market and developing countries. A separate IMF How to Note discusses managing VAT refunds in developing countries.
Series:
How-To Note No 2023/001
Subject:
Crime Economic sectors Revenue administration Tax administration core functions Tax policy Tax refunds Taxes Value-added tax
Frequency:
occasional
English
Publication Date:
August 4, 2023
ISBN/ISSN:
9798400228728/2522-7912
Stock No:
HTNEA2023001
Format:
Paper
Pages:
31
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