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Tax Fraud and Confiscation
Simon Farrell QC
3rd October 2014
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The MTIC story 2000-2006
The cost to the UK
The early MTICs and the ever expanding circles
Contra trading and double contra trading
The summer of 2006
The appeals in the Tribunal
The criminal prosecutions eg Euripus and Devout
© Three Raymond Buildings 2014
Tax Fraud and Confiscation
Simon Farrell QC
3rd October 2014
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The issue in the First Tier Tax Tribunal
The focus is on the broker/exporter
The Kittel test
T. “knew or ought to have known” that the transaction
was connected to a tax loss
• Features of the trade
© Three Raymond Buildings 2014
Tax Fraud and Confiscation
Simon Farrell QC
3rd October 2014
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The changing focus of the criminal prosecutions
Buffers and brokers
The limited number of cases prosecuted
Disclosure issues/difficulties
The high success rates
© Three Raymond Buildings 2014
Tax Fraud and Confiscation
Simon Farrell QC
3rd October 2014
• Criminal confiscation and tax fraud
• The issues in section 76(4) POCA and 76(7)
• What has D “obtained as a result of or in connection with his
criminal conduct” and what is the value
• The overkill in the Ahmad case - £184.6 million
• Tax loss of £12 million
• Benefit of co-defendants £90 million each
© Three Raymond Buildings 2014
Tax Fraud and Confiscation
Simon Farrell QC
3rd October 2014
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The solution in the Court of Appeal [2012] 1WLR 2335
The Ahmads had obtained the tax loss £12 million each
Proportionality
Ahmad in the Supreme Court judgement June 18th 2014
The confiscation “cap”
Enforcement
© Three Raymond Buildings 2014
Tax Fraud and Confiscation
Simon Farrell QC
3rd October 2014
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Confiscation where are we now ?
Paulet ECHR 13th May 2014
R v Sale [2014] 1 WLR 663 (CA)
Bestel and others [2014] 1 WLR 457
Barnes v Eastenders Cash and Carry [2014] 2 WLR 1269
R v Harvey [2014] 1 WLR 124 (CA)
Hidden assets
Reform
© Three Raymond Buildings 2014