1. European Parliament Brussels, 5 May 2008
United against fraud !
European Parliament Brussels, 5 May 2008

2. United against fraud ! Federal Public Service Finance, Belgium
Mr Frank PHILIPSEN
Special Tax Inspectorate
Administrator « Struggle against fraud »
Mr Yannic HULOT
OCS carousel – VAT fraud Unit
Fiscal coordinator
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3. Organised / Classical VAT fraud
Between 3000 and 4000 protagonists / millions of economic operators
8 basic typologies /diffused fraud, hundreds of typologies
Possible drastic reduction / difficult to apprehend
Organised 30% / 70% Classical
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4. Organised and classical (2002)
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5. Not suited to the fight against organised VAT fraud !
Point-to-point contacts
Requests – answers
Delays
Lost with routine investigations
No or few risk analysis
Not structured data
Each country busy with its own prejudice
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6. Analysis of the SCAC-forms received by Belgium (4Q07)
235 requests
Average amount EUR (max. evaluation)
85 requests classified as “no fraud” (=> 0)
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7. Repartition of the damage
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8. Some statistics (Belgian scac’s 4Q07)
MOY EUR
P25 = 0 EUR
P50 = EUR
P75 = EUR
P90 = EUR
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9. Targeting organised fraud!
Eurocanet
Scac’s
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10. New concepts (born with the idea of the Eurocanet)
Central network (Star network)
Spontaneous
Between anti-fraud Units
Targeting
Risk analysis, risk analysis « a priori »
Structured exchanges
« European spirit »
European vision
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11. Risk analysis « a priori »
What to send ? What to ask ? Where are the biggest dangers ? Which protagonists ? Which companies ? Which typologies ? Which countries involved ? ...
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12. Which methods ? The matching or « cross-checking data » !
Find your « missing traders »
Know where they are buying from
Indicators about fraud (activity, places, roads, …)
Evaluate the fraud
The profiling (data mining)
Identify quickly : Buffers, profit takers, crossed invoicers and conduit companies to put on monitoring
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13. Pol / Just PRIORITY TO ATTACK BIG FISCAL AND FINANCIAL FRAUD
GOVERNMENTAL DECLARATIONS
BUDGET CONTROLS
NATIONAL SAFETY PLANS
NOMINATION OF SPECIFIC SECRETARIES OF STATE
COOPERATION AGREEMENTS FINANCE WITH JUSTICE AND POLICE
MINERAL OIL FRAUD
CAROUSEL FRAUD
BIG SCALE FRAUD
SOCIAL FRAUD
CREATION OF MULTI-DISCIPLINAR SUPPORTING UNITS
TRANSFER OF SPECIALISED FISCAL OFFICERS TO
PUBLIC PROSECUTOR’S OFFICE
LABOUR AUDITOR’S OFFICE
CENTRAL ANTI-FRAUD POLICE SQUAD
FINANCIAL INFORMATION UNIT
DEPARTMENT OF SOCIAL AFFAIRS
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14. Law enforcement 1. imperative monthly VAT return in sensitive sectors
2. approach abusive transactions in the VAT field
3. joint liability tax payer
4. joint liability administrators
5. possibility to close enterprises
6. reject deduction if concerned by carousel fraud
7. simplification of seizure measures
8. increasing of criminal penalties to €
9. specific preventive money laundering indicators
intervention of strawmen
atypical activities in sensitive branches
important increase of turnover and financial operations
irregularities on invoices …
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15. Evaluation Bottom-up method based on : Cross-checking
Profiling data mining
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16. Organised VAT fraud - Evolution
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17. Missing traders each quater
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18. Eurokey before IC acquisition communication of this key to the seller
buyer asks a valid key to his CLO
concerning a well defined operation (treshold - sector)
communication of this key to the seller
supplementary proof of the IC character
nevertheless no definitive validity
in any case opportunity for seller to inform upon his CLO
possibility to cross checking
in real time
by specialised anti-fraud units in both countries
informed by their CLO
few administrative formalities (estim keys/year/27MS)
will only be asked by bona fide traders
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19. THANK YOU !
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