Tax Fraud and Confiscation Simon Farrell QC 3

Tax Fraud and Confiscation Simon Farrell QC 3 rd October 2014 • • The MTIC story 2000 -2006 The cost to the UK The early MTICs and the ever expanding circles Contra trading and double contra trading The summer of 2006 The appeals in the Tribunal The criminal prosecutions eg Euripus and Devout © Three Raymond Buildings 2014

Tax Fraud and Confiscation Simon Farrell QC 3 rd October 2014 The issue in the First Tier Tax Tribunal The focus is on the broker/exporter The Kittel test T. “knew or ought to have known” that the transaction was connected to a tax loss • Features of the trade • • © Three Raymond Buildings 2014

Tax Fraud and Confiscation Simon Farrell QC 3 rd October 2014 • • • The changing focus of the criminal prosecutions Buffers and brokers The limited number of cases prosecuted Disclosure issues/difficulties The high success rates © Three Raymond Buildings 2014

Tax Fraud and Confiscation Simon Farrell QC 3 rd October 2014 • Criminal confiscation and tax fraud • The issues in section 76(4) POCA and 76(7) • What has D “obtained as a result of or in connection with his criminal conduct” and what is the value • The overkill in the Ahmad case - £ 184. 6 million • Tax loss of £ 12 million • Benefit of co-defendants £ 90 million each © Three Raymond Buildings 2014

Tax Fraud and Confiscation Simon Farrell QC 3 rd October 2014 • • • The solution in the Court of Appeal [2012] 1 WLR 2335 The Ahmads had obtained the tax loss £ 12 million each Proportionality Ahmad in the Supreme Court judgement June 18 th 2014 The confiscation “cap” Enforcement © Three Raymond Buildings 2014

Tax Fraud and Confiscation Simon Farrell QC 3 rd October 2014 • • Confiscation where are we now ? Paulet ECHR 13 th May 2014 R v Sale [2014] 1 WLR 663 (CA) Bestel and others [2014] 1 WLR 457 Barnes v Eastenders Cash and Carry [2014] 2 WLR 1269 R v Harvey [2014] 1 WLR 124 (CA) Hidden assets Reform © Three Raymond Buildings 2014