Four Arrested For £16 million Construction VAT Fraud

Four people were arrested yesterday during raids in Leyton, Woodford Green and Loughton by officers investigating a suspected £16 million VAT fraud.

Codenamed Operation Guess, the action follow a year long investigation into VAT fraud in the construction industry and subsequent money laundering activity. All the suspected businesses are involved in new builds and are believed to have broken rules relating to their right to reclaim VAT on expenses incurred during construction.

Chris Harrison, HMRC director of operations, said: "This is not a victimless crime and we are committed to bringing those involved to justice, depriving them of the proceeds of their crime and to recovering the money stolen from the taxpayer."

Those arrested have been taken to Customs custody facilities in the area for questioning by HMRC investigators.