PracticeConsultingTaking Stock – Illegal profits still get stung for tax.

Taking Stock - Illegal profits still get stung for tax.

It is good to see the controversy of drug taking shows no sign of abating.

The latest sub-issue to emerge follows a paper released by the Cabinet Office which described how a cheeky drug dealer declared his illegal earnings to the Inland Revenue for over 10 years.

Despite this declaration our friends at the Revenue were not able to inform the police because of the current legislation.

This revelation has ‘astonished’ Chris Chadburn, Baker Tilly partner and former Kings Cross Revenue district inspector, who has called on ministers to change the laws to make it easier for the Revenue and Customs to share information with detectives.

He said: ‘For too long the Revenue has been happy to pick up soft targets, but it should have broader horizons and begin the process of targeting the organised crime gangs’.

At present, UK law does not distinguish between profits from legal or illegal activities.

Chadburn, who investigated porn videos and massage parlours for the Revenue, also revealed it is usual for prostitutes to pay tax on their earnings under the description of ‘personal services’ or ‘furnished lettings’.

It may be safe to assume Chadburn was not in agreement with the one in three FDs who recently admitted to this very organ that they had smoked cannabis.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer