Three men have been arrested as part of a HMRC investigation into a suspected attempt to claim £300m in research and development tax credits
The suspected fraud, if it had been successful, would have been worth around £300m across five years.
On 28 June over 30 HMRC officers searched three homes and one business during raids in the West Midlands, where they seized computers and business records.
Of the three men, one was from Leamington Spa aged 40, one was from Birmingham aged 44 and the other was from Coventry aged 49.
All three were interviewed by HMRC and have now been released on bail.
Martin Brown, assistant director, fraud investigation Service 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. We will continue our work to tackle any fraud or attempted fraud, to ensure taxes are directed to where they should be and not into the pockets of criminals. No one is beyond our reach.’
Investigations are ongoing.
