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.