United Kingdom Disputes EU Fraud Estimate

August 28, 2017 Charles Riordan

The United Kingdom is contesting a charge that "continuous negligence" by its customs agency has resulted in 1.987 billion Euros in lost duties on Chinese merchandise. The Office de Lutte Anti-Fraude (OLAF) conducted a two-year investigation into the matter, and recommended earlier this year that the UK pay the money into the EU budget itself as compensation. 

The UK has now written a letter, addressed to the European Commission, calling OLAF's estimate of the losses "inflated" and "overly simplistic," while touting HMRCs record at combating tax evasion. The letter, dated August 8, comes at a time when the UK government is engaging the EU about future customs relationships following Brexit. The Commission's only response has been that the investigation procedure is "ongoing." 

About the Author

Charles Riordan is a member of the Tax Research team at Sovos Compliance specializing in international taxation, with a focus on Value Added Tax systems in the European Union. Charles received his J.D. from Boston College Law School in 2013 and is an active member of the Massachusetts Bar.

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