Eight people arrested over suspected attacks on R&D incentives

HMRC confirmed that on 12 October it arrested eight people suspected of organising criminal attacks and fraudulent abuse of research and development (R&D) relief claims including a tax agent alleged to have criminally facilitated the fraudulent attack.

According to the tax authority 130 officers of HMRC’s Fraud Investigation Service (FIS) executed warrants in multiple locations across England. These individuals arrested are suspected of conspiring to submit more than 100 fraudulent research and development tax credits claims totalling over £16m and laundering the proceeds.

Andrew Park tax investigations partner at Andersen LLP said: ‘These arrests show that intensive work by HMRC's FIS to address the most egregious R&D fraud appears to be paying dividends. HMRC's FIS only has limited resources to prosecute the worst minority of wrongdoers and it is important for them to maximise the deterrent factor by bringing successful and high...