In a plan to swamp Greater Manchester with duty free cigarettes and tobacco, four men, Mark O'Neill (50), Christopher Bridgemen (49), Cyril Crowe (57), and Gerard Neville (49), were sentenced after an investigation conducted by HMRC uncovered their attempt to launder their profits illicitly.
It was found that all four men were associated with the storage and transportation of the goods around the North West of England in order to avoid £425,000 in UK taxes. They were also caught with considerable amounts of money, although each of them were unemployed. It is assumed to be the profits made from their activity.
Assistant Director, Criminal Investigation, HMRC, Sandra Smith said:
"We are determined to tackle the illicit tobacco trade in Greater Manchester. These men moved smuggled cigarettes and illegal cash around the North West region and, as a result of our actions, we have disrupted criminals who used illegal tobacco as a commodity to fund their lifestyles.
"My message is clear to anyone engaged in this illegal activity - HMRC will pursue those who ignore the rules on the sale, storage and supply of illicit tobacco goods.
"The evasion of excise duty is a criminal offence. If you are caught, you will not only have your goods seized but you may also face prosecution and, if convicted, a criminal record or prison sentence. Anyone with information about the illegal trade in smuggled cigarettes and tobacco in the Manchester area should contact the customs hotline on 0800 59 5000."
The four men had been seen at several incidents meeting in the area, often exchanging money or goods. After searching their vehicles, their homes and storage units, large quantities of cash affiliated with their illegal trade were discovered. During the sentencing at Manchester Crown Court, His Honour Judge Steiger stated that O'Neill had "played a prominent and major role in the conspiracy" and "Crowe and Bridgemen were his trusted and reliable lieutenants", whereas Melville was "only involved in the conspiracy from April to June 2012", leaving him with a lesser sentence to serve.
Each of the men were charged with conspiracy to evade the excise duty payable on goods. The cigarettes were recycled for the National Grid to use as fuel, the cash and used vehicles found were seized, and an investigation into their lifestyles and profits made took place.
HMRC is asking people who may have any information to call in and help to fight against crime.
Tuesday, 13 January 2015
Wednesday, 7 January 2015
Accountant Sentenced For Fraudulent Evasion
After pleading guilty to £65,000 worth of tax fraud, a Derby based accountant has been sentenced to 16 months of jail time for a total of seven offences.
59 year old Stephen Douce, co-director of ACA Accountancy Services LTD, spent 5 years pocketing the VAT charged on clients, withheld income on Self Assessment Tax Returns, and claimed two years' tax credits illicitly, HMRC discovered. Douce declared that his household income was £4,500 annually for himself and his wife, when in reality it was over the figure of £56,000.
HMRC's Assistant Director, Criminal Investigation, Stuart Taylor, said:
"As an accountant, Douce was in a position of trust and well aware that he was breaking the law. He chose to do this for the opportunity for making what he wrongly assumed would be easy money, at the expense of the UK taxpayers. He now has to pay the price for his criminal activity.
"If you know of anyone who is committing tax fraud you can report them by calling our 24 hour hotline on 0800 59 5000."
The investigation showed that over a 5 year period between 2008 and 2013, Douce profited £31,905.07 from his clients' VAT payments, all of which should have been paid directly to HMRC, alongside evading Income Tax, £18,203.79 in National Insurance contributions, and claimed £14,111.11 in tax credits.
On 25th November 2014, Douce pleaded guilty to seven offences of fraudulent evasion, and was jailed for 16 months on Tuesday 6th January. Recovery of the stolen money has begun via means of confiscation proceedings.
59 year old Stephen Douce, co-director of ACA Accountancy Services LTD, spent 5 years pocketing the VAT charged on clients, withheld income on Self Assessment Tax Returns, and claimed two years' tax credits illicitly, HMRC discovered. Douce declared that his household income was £4,500 annually for himself and his wife, when in reality it was over the figure of £56,000.
HMRC's Assistant Director, Criminal Investigation, Stuart Taylor, said:
"As an accountant, Douce was in a position of trust and well aware that he was breaking the law. He chose to do this for the opportunity for making what he wrongly assumed would be easy money, at the expense of the UK taxpayers. He now has to pay the price for his criminal activity.
"If you know of anyone who is committing tax fraud you can report them by calling our 24 hour hotline on 0800 59 5000."
The investigation showed that over a 5 year period between 2008 and 2013, Douce profited £31,905.07 from his clients' VAT payments, all of which should have been paid directly to HMRC, alongside evading Income Tax, £18,203.79 in National Insurance contributions, and claimed £14,111.11 in tax credits.
On 25th November 2014, Douce pleaded guilty to seven offences of fraudulent evasion, and was jailed for 16 months on Tuesday 6th January. Recovery of the stolen money has begun via means of confiscation proceedings.
Tuesday, 6 January 2015
Thursday, 18 December 2014
HMRC Target Illicit Fuel Sites
A filling station in County Down has had its pumps removed after HM Revenue & Customs suspected the sale of illicit fuel.
During the operation, (Wednesday 10th December), two separate sites were visited; an oil storage depot where 4,000 litres of suspected illegal fuel were seized, and a filling station where working with specialist contractors, HMRC carefully removed its fuel pumps and an overground fuel storage tank.
National Oils Co-ordinator, HMRC, Pat Curtis said: "Selling illicit fuels creates an unfair playing field and seriously undercuts legitimate traders who should be able to operate without the threat of unfair competition. Retailers who sell illicit diesel will not only face seizure of fuel and equipment from their premises, but also risk losing their license to trade.
"Anyone with information on fuel misuse or suspicious activities can contact the Customs Hotline on 0800 59 5000."
There are ongoing information into the filling station and storage site.
During the operation, (Wednesday 10th December), two separate sites were visited; an oil storage depot where 4,000 litres of suspected illegal fuel were seized, and a filling station where working with specialist contractors, HMRC carefully removed its fuel pumps and an overground fuel storage tank.
National Oils Co-ordinator, HMRC, Pat Curtis said: "Selling illicit fuels creates an unfair playing field and seriously undercuts legitimate traders who should be able to operate without the threat of unfair competition. Retailers who sell illicit diesel will not only face seizure of fuel and equipment from their premises, but also risk losing their license to trade.
"Anyone with information on fuel misuse or suspicious activities can contact the Customs Hotline on 0800 59 5000."
There are ongoing information into the filling station and storage site.
Tuesday, 16 December 2014
Fraudulent Handyman Sentenced
After working as a handyman for more than 20 years, Norfolk man Richard Green, has been imprisoned for three years after deceiving the tax system out of roughly £169,776. The 63 year old confessed to being self-employed since before 1992 without paying an ounce of tax, National Insurance, and failing to register with HMRC.
Assistant Director Criminal Investigation, HMRC, Paul Barton said:
"Green admitted that he should have paid tax on his self-employment but failed to do so. This fraudulent activity is not acceptable when the majority of people pay their dues and play by the rules. If you know of anyone committing tax fraud, you can report them by calling our 24 hour hotline on 0800 59 5000."
On 16th December 2014, Green was sentenced by Norwich Crown Court to three years imprisonment. The fraud was uncovered during HMRC's investigation where officers failed to find any tax returns from himself. Green had told HMRC that his earnings from self-employment reached between £15-£25,000 but after officers checked his bank records for 2007 - 08, they found an income of almost £70,000.
He was charged with Cheating the Public Revenue on 13th November 2013 and pleaded guilty on 26th February 2014.
Assistant Director Criminal Investigation, HMRC, Paul Barton said:
"Green admitted that he should have paid tax on his self-employment but failed to do so. This fraudulent activity is not acceptable when the majority of people pay their dues and play by the rules. If you know of anyone committing tax fraud, you can report them by calling our 24 hour hotline on 0800 59 5000."
On 16th December 2014, Green was sentenced by Norwich Crown Court to three years imprisonment. The fraud was uncovered during HMRC's investigation where officers failed to find any tax returns from himself. Green had told HMRC that his earnings from self-employment reached between £15-£25,000 but after officers checked his bank records for 2007 - 08, they found an income of almost £70,000.
He was charged with Cheating the Public Revenue on 13th November 2013 and pleaded guilty on 26th February 2014.
Wednesday, 10 December 2014
Nottingham Based Beautician Sentenced For Tax Fraud
After cheating the taxpayer out of over £30,000, a Nottinghamshire beautician has been sentenced due to lying about her personal circumstances and income. 30 year old mother of one, Rebecca Eddishaw, failed to inform HM Revenue & Customs that she was receiving two incomes from renting out two separate properties when claiming tax credits.
Assistant Director, Criminal Investigation, HMRC, Stuart Taylor stated: " Eddishaw knowingly carried out this fraud for four years. She purposefully left out her extra income so that she would receive higher tax credits payments, while also failing to pay tax on the rent money she received.
HMRC recognises it is only a minority that are exploiting the system, but we would encourage anyone with information relating to tax credit fraud to call 0800 854 400."
Over a four year period, 2009-2013, Eddishaw failed to declare her property earnings; averting paying more than £13,797 in tax and receiving a higher rate of tax credit, meaning she was overpaid by nearly £16,941.
At Nottingham Magistrates Court, 9th June, Rebecca Eddishaw was charged for three offences:
'Knowingly concerned in the fraudulent evasion of income tax by failing to declare rental income in tax returns to HMRC.'
'Knowingly concerned in fraudulent activity undertaken with a view to obtain payment of Tax Credit by failing to declare rental income.'
'Knowingly concerned in fraudulent activity undertaken with a view to obtain payment of Tax Credit by failing to declare a change in circumstances.'
At the Plea and Case Management Hearing on 6th October, Eddishaw pleaded guilty to all three charges, and on 9th December received an 18 month prison sentence, suspended for 18 months and has been ordered to fulfill 150 hours of unpaid work.
Tuesday, 9 December 2014
Self Assessment for Company Directors
Are you self employed, a partner in a business or a company director? Then you should be aware of the approaching deadline for your Self Assessment Tax Return.
This year, your returns must be submitted to HMRC by 31st January. Any submissions after this date will result in a £100 fine for late filing, and £10 daily penalties will come into effect if returns are still outstanding after 3 months, unless HMRC believe there is a valid reason resulting in this late submission. Examples and all information can be found on https://www.hmrc.gov.uk/online/excuse-missed-deadline.htm, however each case is different and will be considered individually.
If the deadline cannot be met, HMRC must be informed as soon as possible as there may be the option of an extension, or the opportunity to pay in instalments, but this will only apply if contact is made prior to the 31st.
If you need your tax return completed by an accountant, contact U-Tax on 01564 732174. We'll complete your return, have it submitted on time and correspond with HMRC on your behalf, all for just £75 + VAT.
This year, your returns must be submitted to HMRC by 31st January. Any submissions after this date will result in a £100 fine for late filing, and £10 daily penalties will come into effect if returns are still outstanding after 3 months, unless HMRC believe there is a valid reason resulting in this late submission. Examples and all information can be found on https://www.hmrc.gov.uk/online/excuse-missed-deadline.htm, however each case is different and will be considered individually.
If the deadline cannot be met, HMRC must be informed as soon as possible as there may be the option of an extension, or the opportunity to pay in instalments, but this will only apply if contact is made prior to the 31st.
If you need your tax return completed by an accountant, contact U-Tax on 01564 732174. We'll complete your return, have it submitted on time and correspond with HMRC on your behalf, all for just £75 + VAT.
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