Three men have been arrested after an investigation into one of the biggest alleged tax scams on record in the West Midlands.
The trio have been released on bail following HM Revenue and Customs (HMRC) raids amid a suspected attempt to fraudulently claim £300 million in research and development tax credits.
More than 30 officers from HMRC searched three homes and one business address during morning raids in the West Midlands on June 28.
Martin Brown, assistant director of HMRC’s Fraud Investigation Service, said computers and business records were seized during the operation.
He added: “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.”
The suspected fraud, had it been successful, would have been worth an estimated £300 million over five years.
The men, one aged 44 from Birmingham, one aged 40 from Leamington Spa, and another aged 49 from Coventry, were interviewed by HMRC and have been released while investigations continue.
HMRC has declined to give any more information while investigations take place.
However, R&D tax relief offered as an incentive for certain businesses to undertake research and development.
The tax credits allow companies can reduce their tax bills, or claim payable cash credits on the back of spending on R&D.
