TAX cheats in Scotland who try to fraudulently reclaim VAT are being targeted by a newly set-up HM Revenue and Customs (HMRC) taskforce following a rise in this type of crime.

The repayment taskforce will track down and investigate individuals and businesses suspected of making false VAT repayments claims.

Treasury officials say they are particularly concerned about businesses being set up purely for the purpose of making false VAT repayments claims.

Taskforces are specialist teams that undertake intensive bursts of activity in specific high-risk trade sectors and locations in the UK. The teams visit traders to examine their records and carry out other inquiries.

David Gauke, Exchequer Secretary to the Treasury, said: "This Government has made it clear that we will not tolerate tax evasion and has provided HMRC with the resources to crack down on those who break the rules.

"We are determined to support hardworking people who want to get on, but the people being targeted by these taskforces have no intention of playing by the rules." HMRC has collected more than £90 million as a result of taskforces launched since 2011-12. It expects to bring in over £90m per year from taskforces launched over the next three years.

Director General of Enforcement and Compliance, Jennie Granger, said: "It is really important we level the playing field by stopping tax cheats. Our message is - do the right thing."