Carousel fraud in terms of price manipulation

Cecilia Olexova, Milan Hustak, Frantisek Sudzina

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

Purpose: The purpose of this paper is to analyse the effects of carousel fraud on the average price of goods, as one of the negative economic aspects of carousel fraud. Design/methodology/approach: This paper is primarily based on the description of selected legal cases and the modus operandi of carousel fraud, the analysis of legal texts (legislation and judgments of courts) and the discussion, from the point of view of price manipulation. Findings: The results of the analysis specify the negative impact of carousel fraud in the form of the distortion of reported average prices and suggest that the authorities should monitor usual or fair prices to detect cases where there is a risk of carousel fraud. Originality/value: This paper brings new insight into the issue of carousel frauds by understanding the principle of carousel fraud, the motives for it, and the possibilities for detecting this type of tax fraud, which is necessary to prevent tax evasion and to preserve a state’s income.

Original languageEnglish
JournalJournal of Financial Crime
ISSN1359-0790
DOIs
Publication statusAccepted/In press - 2021

Keywords

  • Carousel fraud
  • Legal cases
  • Price manipulation
  • Usual price
  • Value added tax

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