HMRC has wasted hundreds of thousands of pounds in its criminal probe into Eastenders Cash & Carry, a leading tax and business crime barrister has estimated.
Writing in Tax Journal, Jonathan Fisher QC described HMRC's experiences as "unfortunate" and "embarrassing".
A raft of search warrants, restraint orders and receivership orders have been quashed in appeal hearings since they were granted at the end of 2010.
The appeals were granted because HMRC did not have sufficient evidence before applying for "invasive" orders that imposed management receivers BDO to run day-to-day business at the six depots and confiscated the passports of directors Alex Windsor and Kulwant Hare. HMRC had relied on information from foreign authorities relating to an alleged £23m alcohol diversion fraud instead of using its powers to enter premises and 'track and trace' goods, Fisher said.
The alleged offenders presented evidence, which HMRC was unable to contradict, that the company's wholesale C&C business supplied groceries along with beer, wines and spirits, had a total turnover of £150m, employed 120 employees and at least 95% of its business was demonstrably legitimate, Fisher wrote. "Accordingly, the alleged offenders contended that HMRC could not show they had reasonable cause to believe they had benefited from the criminal conduct alleged."
HMRC declined to comment.
Writing in Tax Journal, Jonathan Fisher QC described HMRC's experiences as "unfortunate" and "embarrassing".
A raft of search warrants, restraint orders and receivership orders have been quashed in appeal hearings since they were granted at the end of 2010.
The appeals were granted because HMRC did not have sufficient evidence before applying for "invasive" orders that imposed management receivers BDO to run day-to-day business at the six depots and confiscated the passports of directors Alex Windsor and Kulwant Hare. HMRC had relied on information from foreign authorities relating to an alleged £23m alcohol diversion fraud instead of using its powers to enter premises and 'track and trace' goods, Fisher said.
The alleged offenders presented evidence, which HMRC was unable to contradict, that the company's wholesale C&C business supplied groceries along with beer, wines and spirits, had a total turnover of £150m, employed 120 employees and at least 95% of its business was demonstrably legitimate, Fisher wrote. "Accordingly, the alleged offenders contended that HMRC could not show they had reasonable cause to believe they had benefited from the criminal conduct alleged."
HMRC declined to comment.
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