EU moves to tackle carbon trading fraud

In responding quickly to new and worrying fraud patterns reported by several Member States in 2009 the European Commission adopted a proposal on the 29 September 2009 for an optional and temporary application of the reverse charge mechanism to supplies of certain goods and services, which will allow Member States to fight carousel fraud in a consistent manner across the European Union.

The proposal notably covers greenhouse gas emission allowances that have been the object of VAT fraud during last summer. The proposal includes evaluation and reporting obligations for Member States which will allow a precise assessment of the efficiency of the measures.

• Primary Source

European Commission: Press Release: IP/09/1376: Fight against tax fraud: Commission proposes measures for a consistent response to carousel fraud in certain sectors http://europa.eu/rapid/pressReleasesAction.do?reference=IP/09/1376&format=DOC&aged=0&language=EN&guiLanguage=en

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