A man was receiving thousands of VAT tax bills from foreign companies.
A British man was shocked to receive several envelopes of electricity bills in the mail, which amount to 500,000 pounds (Rs 50832750). These bills were from 11,000 firms, mostly from China, after HMRC allowed them to register for VAT at his address, according to The Independent.
The news outlet further reported that Dylan Davies, the recipient of thousands of letters from HM Revenue & Customs (HMRC) and debt collectors demanding at least 500,000 pounds (Rs 50832750) in unpaid taxes, said the “horrendous” situation had left him squarely in the sights of bailiffs who could come “charging the door down.”
The extraordinary case, according to an expert quoted by the news outlet, “looks to all intents and purposes like VAT fraud.” The expert also urged HMRC to completely “tighten up” the VAT registration process for foreign companies.
According to the BBC, Mr. Davies said HMRC needed to “tighten up completely,” claiming it was easier to “register a company for VAT than it is to go and get a bus pass.”
HMRC said: “We are reviewing our operational processes for managing high volume address changes, including understanding any vulnerabilities in our systems associated with this behaviour.”
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