VAT Anti-fraud Policy, Third Party Liability, and the Rule of Law

The inaugural lecture of Professor Rita de la Feria. The size of VAT fraud across Europe is said to be extremely high. It is therefore unsurprising that the last few years have seen a strengthening of VAT anti-fraud policy across most Member States, with an upsurge in both legislative and administrative measures adopted at both national and EU level. These measures have essentially taken two forms, namely measures to combat the VAT fraud and evasion phenomenon, and measures to counter the costs of VAT fraud. Amongst the later are measures focussing primarily on the transfer of liability to third parties, and their responsabilisation for the enforcement of the tax law. Anti-fraud policy appears to be no longer regarded solely as a deterrent or as a form of punishment, but as an additional source of revenue, or a compensatory measure for the revenue lost through fraud. These developments are evidence of a significant shift in VAT anti-fraud, motivated by public finance concerns; a shift from crime suppression to crime management.

Professor Rita de la Feria

2/24/2017 10:23:50 AM