Seven addresses in Glasgow were searched under warrant with follow up visits to around 30 tax credit claimants’ addresses in Manchester, Derbyshire, West Yorkshire, South Yorkshire and Glasgow to verify details of claims.
In the multi-agency operation the five people were detained after officers from HMRC and Strathclyde Police raided seven addresses in the Govanhill area of Glasgow.
Those detained are believed to be part of an organised crime group involved in tax credits fraud using false addresses and employment details and claiming for a significant number of fictitious children.
Today’s operation was a major effort by the partner agencies of Scotland’s Serious Organised Crime Task Force (SOCTF) involving over 50 HMRC criminal investigators and over 50 officers from Strathclyde Police.
HMRC Assistant Director of Investigation in Scotland, John Fitzcharles said:
“Today’s raids form part of an ongoing investigation of a large-scale tax credits fraud. These individuals have been detained on suspicion of attacking the tax credits system; a system which exists to help the most vulnerable in society.
“As organised crime evolves it brings with it new threats and different challenges for us to tackle. By working in partnership, to combine effective enforcement with ongoing public support, the agencies within Scotland’s SOCTF are tackling criminality to rid our society of the economic and human costs of organised crime.”
Assistant Chief Constable John Neilson said:
“This morning’s operation demonstrates Strathclyde Police Force’s commitment to working in partnership with other agencies in the fight against serious organised crime.
“All organised crime groups use violence and intimidation to protect their criminal assets, and this brings misery to our communities. Serious and Organised Crime is a very high priority for Strathclyde Police and we are working tirelessly with our partner agencies to crack down on these groups and protect communities.”
Anyone with information about activity they suspect may be linked to tax credit fraud should call the HMRC tax credit helpline on 0845 300 3900.
Notes to editors
1. Tax credits are helping around 20 million people, including 6 million families and 10 million children. Take-up is higher than for any previous system of income-related support, and through tax credits, people without children are, for the first time, entitled to income-related support. Tax credits have helped lift 600,000 children out of relative poverty since 1998-99. Improvements made to the tax credit system have reduced overpayments by more than half, increased flexibility and provided more certainty to families.
2. In 2006-07 HMRC identified attempts to defraud the tax credit system of around £252m. Of this the vast majority, some £212m, was detected by HMRC before any money was paid out. HMRC take all fraudulent activity very seriously, and we aim to eradicate it from the system as soon as it becomes detected. HMRC can and does prosecute fraudsters.
3. There are two types of tax credits: Child Tax Credit, for those with children regardless of whether or not they are in work; and Working Tax Credit, for people in work whether or not they have children.
4. Scotland’s Serious Organised Crime Taskforce (SOCTF), which launched its Strategy on 2 June 2009, is chaired by the Justice Secretary, Kenny MacAskill, and includes the Lord Advocate, the Association of Chief Police Officers in Scotland, the Scottish Crime and Drug Enforcement Agency, the Serious Organised Crime Agency, Her Majesty’s Revenue & Customs, and the Scottish Prison Service.
Issued by HM Revenue & Customs Press Office
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