TaxPersonal TaxRevenue sets confiscation precedent

Revenue sets confiscation precedent

The Inland Revenue has set a legal precedent by winning the right to claim all the company money a convicted tax fraudster diverted into hidden bank account - an amount in excess of £1m.

John Foggon of 255 Worsley Road, Swinton, Manchester, was made subject to a confiscation order of Pounds 1,068m at Manchester Crown court last week Friday. The order was unprecedented in that it reflected the total amount that Foggon had benefited from rather than simply the amount of tax and interest evaded.

The confiscation order against Foggon was more than double the tax and interests charges the Revenue lost out on, which amounted to Pounds 450,398.

Foggon had previously pleaded guilty to defrauding the Inland Revenue over a number of years by diverting in excess of Pounds 1m of company money into a hidden bank account.

The former chairman of Worsley-based cleaning machine supplier and servicer Vaclensa was jailed for two years in May after being found guilty of tax fraud by a Manchester Crown court.

If he does not pay the money he will serve a further six years in prison.

In response to the court decision, the Revenue said it was duty of anyone who operates a bank account in a similar way to Foggon or understates profits or income by any other means, to make an early and full disclosure of this.

Taxpayers that do make such a disclosure should expect to pay tax, interest and penalties on the money they have not previously disclosed.

But if they wait to be prosecuted, they risk not only a prison sentence but also confiscation of all the money or other benefits they made from the tax evasion.

Links

Dirty money can clean you out

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

2d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

5m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

5m Alia Shoaib, Reporter