The Canadian government has revealed that it was the victim of a multimillion-dollar swindle known as a “carousel scheme” that is based on fraudulent sales tax refunds. The Canada Revenue Agency has identified $52-million in fraudulent requests for sales tax refunds and rebates over a five-year period. According to the CRA, 11 people based in Britain orchestrated the “tax fraud and money laundering scheme.”|
The CRA launched a crackdown on Tuesday, conducting a series of raids in three locations in Canada and six others in Britain. Dozens of corporations were allegedly created in both countries to perpetrate the fraud.