Details of Dundee man's alleged multimillion tax scam

There has recently been a trial of a man from Dundee at the high court in Edinburgh about a scam that was used to get millions of pounds in VAT. This is a 40 year old man named Shahid Ramzan and he is charged under the Proceeds of crime Act of illegally transferring almost £115m from Scotland. He has been accused of using a scheme where goods were sold with VAT charged but not paid and then the VAT is claimed back. He denies the charge and is also failing to pay £6m in VAT.
Roderick Stone of HMRC explained how the scheme worked. he said the trick is that an importer sells on goods charging VAT but not actually paying it. eventually the goods, after passing through several companies are exported again, which is 'Carousel Fraud'.
The exporter claims back and receives, a VAT refund from what seems to be a genuine transaction,but because the refunded VAT hasn't been handed over in the first place, HMRC makes a loss.
Mr Stone said because the same commodities can go round from importer to exporter broker and back again, the scam is known as a carousel fraud.
Mr Razman denies a charge brought under the Proceeds of Crime Act alleging that he took steps to hide or remove from Scotland a total of £115m gained through these frauds, also known as a trader intra community fraud.
He is also accused of cheating the tax man out of about £6m of VAT which he also denies.
Mr Stone told the jury that traders operating MTIC scams preferred to deal in low volume, high value goods. Computer chips and mobile phones were a favourite in 2004, he said.

The trial is expected to last around three months.

http://www.bbc.co.uk/news/uk-scotland-tayside-central-19803470

This case links to the studies of white and blue collar crime and this case is about a white collared crime that is seriously unrecorded in this society because the society mostly focuses on the blue collar crime. It's also under recorded because people don't want negative publicity.