Vat Fraud and Evasion : What Do We Know, and What Can Be Done?
Vat Fraud and Evasion : What Do We Know, and What Can Be Done?
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Author(s): International Monetary Fund (Corporate)
Smith, Stephen C.
ISBN No.: 9781451865950
Pages: 33
Year: 200702
Format: Trade Paper
Price: $ 27.60
Dispatch delay: Dispatched between 7 to 15 days
Status: Available

Like any tax, the VAT is vulnerable to evasion and fraud. But its credit and refund mechanism does offer unique opportunities for abuse, and this has recently become an urgent concern in the European Union (EU). This paper describes the main forms of noncompliance distinctive to a VAT, considers how they can be addressed, and assesses evidence on their extent in high-income countries. While the practical significance of current difficulties in the EU should not be over-stated, administrative measures alone may prove insufficient to deal with them, and a fundamental redesign of the VAT treatment of intra-community trade required. The current difficulties in the EU largely reflect circumstances that would not apply in the United States.


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