Lord Lucas – 2016 Parliamentary Question to the HM Treasury

The below Parliamentary question was asked by Lord Lucas on 2015-12-22.

To ask Her Majesty’s Government what assessment they have made of their obligation under EU law to prevent VAT evasion.

Lord O’Neill of Gatley

In considering fraud against European own resources, including VAT collection, the European Court recently clarified in the Taricco judgment that Member States are obliged under EU law (Article 325 of the Treaty on the Functioning of the European Union) to have in place effective and dissuasive criminal penalties against VAT fraud. The UK applies a full range of penalties to address various behaviours from dishonesty and deliberate inaccuracies through to criminal prosecutions for VAT offences.