Thirteen held in VAT fraud raids

Searches were continuing at the properties throughout the day

Thirteen people were arrested in raids by officers investigating allegations of a multi-million pound VAT fraud.

About 280 police and customs officials swooped on 20 premises in Lancashire, Greater Manchester and the Midlands.

Searches took place at businesses and private homes in Preston, Warrington, Rochdale, Birmingham and Leicester.

Investigations centred on the import of counterfeit goods and the alleged overvaluation of exports, leading to false claims for VAT repayments.

Those arrested in Lancashire, five men and four women aged between 24 and 57, were being interviewed by police and customs officers throughout Thursday.

Four more people were arrested in the West Midlands.

The operation by Lancashire Police and HM Revenue and Customs (HMRC) was the culmination of a "protracted and complex" investigation, HMRC said.

False claims

Martin Greening, of HMRC North West, said: "The misdescription and overvaluation of goods for export has resulted in false claims running into millions of pounds."

Det Ch Supt Graham Gardner, of Lancashire Constabulary, said the investigation had examined "many different types of alleged criminality", including counterfeit goods, money laundering and VAT fraud.

Part of the complex inquiry is believed to include the import and export of goods as part of so-called "carousel" fraud.

Under carousel fraud, items are "bought" in a series of contrived transactions - where VAT should be collected - and then sold on, although the goods can often only exist on paper.

At that point the next trader in the circle can submit a claim for the repayment of the VAT that was never collected in the first place.