A MAN from Coventry has been arrested into a suspected attempt to fraudulently claim £300 million in research and development (R&D) tax credits.
More than 30 officers from HMRC searched three residential and one business address during morning raids across the West Midlands on Tuesday (June 28) morning.
The 49-year-old, who cannot be named, has been released on police bail while investigations continue – two other men, from Leamington Spa and Birmingham, have also been arrested.
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.
Computers and business records were seized during the operation.
Martin Brown, assistant director for the 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.”