Aztec Performance Ltd

iTrader: (234)

Need some support/advice from the scooby community.

I was in the business of wholesaling mobile telephones.

2 years ago I had a knock on the door by customs and excise. I was arrested for 'evasion of VAT'. The alleged amount was in excess of £6million. I was questioned intensively for 2 days. The allegations were along the lines of ...I was purchasing mobile phones from EU countries without paying vat...then charging vat to my customers without the intention to pay the vat. Actually I was purchasing the phones from a UK suppiler with a verified VAT reg number etc so I was thrown by the wild far-fetched accusations.
I paid the VAT to my UK suppliers but it turns out that they 'cloned' a legitimate company and did a run with all the VAT money.n It turns out that this fraud has the hallmarks of organised criminals as the amount of money are so vast.

I was released without charge but the criminal investigation is still ongoing (supposidly). At the same time all my assets have been frozen under a draconian 'freezing order'.

My life has now effectively been on hold for 2 years and I've lost my livelihood. There have been no major developments and legal fees have cost me £50k+ and I dont have trust in my legal team.

Yet customs will still not say whether they are to bring charges and until they do I cant challenge the liabilty. I feel powerless to do anything and dont know which is the best way forward. The system really is unfair.

Anybody with any advice/experience?

ProperCharlie

i remember hearing about this vat evasion scam with selling mobile phones. it seems like you have been caught up in a much larger investigation, through no fault of your own. all i can sugest is consider changing your legal team if you have lost confidence. i can recommned a good commercial solicitor in the west end of london, if that's any use to you.

sounds like you have got a rough deal and need to get things put right.

David Lock

I recall a programme when an innocent wine merchant was totally stitched up by VAT guys, seems they are a law to themselves. You are guilty unless you can prove otherwise. But didn't quite understand what you are saying. Surely you would be reclaiming VAT from your suppliers using their VAT invoice and then subtracting this from VAT which you charge to your customers? So I don't understand your comment about paying the VAT to your suppliers? Sorry I may have got the wrong end of the stick. What does/did your accountant say about it all? Very, very best of luck BTW. DL

sti555

Not really of much help but HMCE of the advantage of being almost unaccountable for their actions/investigations etc.

Unlike the police they seem to have little in the way redress for sloppy investigative work, time limts etc etc.

HMCE really are a law unto themselves, they tend to make things, move the boundries to suit them as they are far less regulated than the police

Bearing in mind most bent coppers always seem to end up at HMCE

It's important you have suitable legal representation, if your not happy with them consider changing.

I would personally contact the surveyor of the team investigating you, arrange a meeting with him/her & your lawyer. May be also wise to contact your local MP, can sometimes help?, if not then try the complants co-ordinator for your region.

If you PM me your county & town, more details...

Aztec Performance Ltd

iTrader: (234)

Charlie: Thanks. Yes unfortunatley this fraud is widespread and many people get unknowingly caught up as HMCE cannot prosecute the 'missing' parties, but they do have pressure to collect the VAT due so they'll pin it on whoever is next in the supply change. If you could PM me the details of the solictors I will look into it. If I form a new legal team I want it to be the best available...are their performance tables of some publicly available?

David: HMCE are trying told hold me liable for my suppliers VAT as well as my own. For example:

1. Supplier buys products VAT free from EU...Value £1,000,000
2. Sellls to me for the same (for simplicity) £1,000,000 plus VAT = £1,175,000
3. I sell onwards for a profit and offset INPUT/OUTPUT VAT.
4. Supplier goes missing without accounting for VAT.
5. HMCE have a shortfall of £175,000 which the fraudsters have pocketed
6. HMCE hold me liable for suppliers VAT aswell as my own.


Accountant says that I should not be liable for suppliers VAT as it was paid and goods received from what I believed to be company they were claiming to be. Their VAT number was valid and checked with HMCE before I traded with them. However HMCE stance is that the invoices aren't actually supplied by the genuine company, so therefore not valid. I took all reasonable checks to make sure they would good to trade with....even phoned HMCE to ask 1st...so therefore I acted on them being true invoices.

STi555: Yes they really are a law unto themselves. I have been chasing the lawyer responsible at HMCE and they wrote back several months after my barrister wrote to them. They said they would 'in any event, know whether or not they are to bring criminal proceedings or not within 2 months'...that was November 2003 and we have heard nothing. I had my solicitor write to them again last month and still no reply.

Not sure whether its possible to arrange a meeting with the prosecution lawyer?
Also unsure of what role MPs could play?

Will PM you details of County Town.



Just want to resolve this matter one way or another. I have nothing to hide and just want to get on with my life. Thanks for all the support guys.

sti555

Bob, YPM

David Lock

Bloody hell mate that's a pretty ****ty attitude from HMCE. Arrogant unfair *******s doesn't even begin to cover it. Your MP is always worth a shout. He can make a fuss with relevant govt dept and they will take notice if he is worth his salt. Are you a member of any Trade Association? DL.


Sorry the swear filter took out the plural of the word that means a fatherless person.......

Daryl

What makes you say that?

gsm1

I'm related to the Mobile phone trade, I've never wholesaled mobiles but I've worked with companies that have. What I can tell you is that it stinks of big time fraud and the people in the industry are two faced. Only the other week I'm looking through one of the trade newspapers and there was an article on problems with HMCE's new legislation. One of the guest commentators in the article was Stu Bailey! This is a guy who was investigated for fraud. His private number plates included JU51 VAT (Just VAT) and ABU 51T (ABUSE IT). Now the industry treat him like some innocent victim.

Aztec Performance Ltd

iTrader: (234)

David: Thats not even the beginning of it. HMCE have changed legislation which means you can be held liable if their is a 'missing trader' anywhere along the supply chain. Also your not allowed to use frozen monies to pay for solicitors and you're not eligible to legal aid as its a civil case until HMCE say otherwise (like asking you to fight with your hands and feet tied). Oh and your not supposed to buy stock if its below market price (whatever determines this). They are trying to halt the whole market as they are losing so much money through the small percentage of organised criminals that use the market. In fact I was told on the record "the whole market is corrupt"! That is HMCE stance on the industry. Will take it up with my MP and reconsider my legal representation.

gsm1: As far as I know he was investigated (which is a horrible experience BTW) and cleared so it doesn't suprise me that he was a little bitter towards the VAT man, hence buying those plates...the thought has crossed my mind once all this has (hopefully) cleared up. ...although I cant see the light appearing anytime soon

gsm1

Bob'5, he was cleared only because there was not enough evidence collected. That's why people choose this crime - it's hard to get done for. Those number plates were bought before he was arrested. What kind of message would you be giving by buying such plates because you had been harrassed?

Anyway, I know myself, well before he got into trouble, what he was up to. He was boasting to other wholesalers about how many invoices he was 'banging through'.

Aztec Performance Ltd

iTrader: (234)

GSM1: Not enough evidence? They dont need much other than invoices etc. In fact the legislation is such that you can be held liable if for any reason HMCE believe you should have been aware of suspious activity...ie products purchased below market value. What is defined as market value is anyones guess. Legislation is so loosely worded in HMCE favour. They have decided enough is enough and if companies go 'missing' with VAT somebody will have to pay.


I'm not trying to defend him as I dont know the ins and outs of the case but many legitemate traders are being fitted up by HMCE legislation.

'Harrassed' is any easy word to sumarise having all your assets frozen, business demolished, livelihood taken away, 'on hold' for 2 years+, living on a stupidly tight budget with CCJs arriving weekly and looking down the barrel at a 7 year prison sentence all because HMCE cant find a missing trader and want to pin it on you. Am I pissed at HMCE?...you betcha!