Lori Stoddart of Swindonasked Her Majesty's Government:
What mechanisms to prevent fraud are to be introduced after 1992 as a result of changes to the system of recording trade between EC countries.
The Earl of CaithnessIn order to combat fraud after the removal of fiscal frontiers, it is proposed that there will be increased administrative co-operation in indirect tax matters between member states' tax authorities. This will allow selected EC transactions to be verified by reference to traders' records. In the UK this will take place as far as possible during the application of normal controls, which will be enhanced to take account of the increased risks in intra-Community trade.