Source: HMRC Press Release, Jun 29, 2016 11:05 BST
Three men have been arrested in connection with an investigation, by HM Revenue and Customs (HMRC), into a suspected attempt to fraudulently claim £300 million in Research and Development (R&D) tax credits.
R&D tax relief is an incentive for certain businesses to undertake research and development, helping to support innovative companies in the UK. The suspected fraud, had it been successful, would have been worth an estimated £300 million over five years.
Martin Brown, Assistant Director, Fraud Investigation Service, HMRC, said:
“While an attack on the tax system is often thought victimless, it isn’t. It means that the public lose out on vital funds for essential services. Any abuse of the R&D tax relief scheme is defrauding a system put in place to help legitimate businesses grow and develop. ….. No one is beyond our reach.”