Evasion of import duty?

Evasion of import duty?

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I have a client who started as a market trader in September 2008, dealing mainly in clothing. He brought his records in this week for me to start work on his 2009 tax return and accounts and, whilst going through the papers it was obvious that there was little in the way of invoices for stock purchases. On questioning, the client told me that most of his stock (estimated cost £6000) had been brought in from India, where he had been living for five years. I asked him about paying import duty and his reply was that he had declared the goods as his own private belongings when they were transported by container.

I feel that I have a Money Laundering issue here and have no option but to report it. However, my question is when to do so?

As it transpired, the client had been passing his takings (pretty sure there will be some cash leakage) and paying most of the expenses through a company bank account (I formed the company in September and had been told that it was still dormant) and not one in his own name. So I don't need to record anything on his personal tax return at the moment and I sent him away with his papers and told him to bring them back to me after the company's first year-end in September 2009.

Should I report him now, when I have no firm evidence, but I feel I do have a reasonable suspicion, or should I wait until I get everything in for the company and question him further at that point (being careful about tipping-off) and make a more useful report to SOCA?

El Nombre

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David Winch
By David Winch
16th Apr 2009 14:40

Good to see . . .

El Nombre, good to see you are still around - I hope Little Juan is keeping out of mischief !!

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By User deleted
16th Apr 2009 13:48

SOCA report done
Thanks David. The report has been sent online today.

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David Winch
By David Winch
15th Apr 2009 19:46

Report it now

I suggest that you report it now. The legal requirement is to report it as soon as is practicable (unless you have a reasonable excuse).

You know the name and address of the suspect (you may even have his passport details), the nature of the offence and the approximate date.

If the authorities wish to follow it up that gives them ample detail to go on.

In the event it is likely that the authorities will take no action on your report.

There is no need to leave this hanging around on your 'to do' list for the next 6 months!

David

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