C Short Limited's Application
| Jurisdiction | Northern Ireland |
| Judge | Humphreys J |
| Judgment Date | 26 October 2023 |
| Neutral Citation | [2023] NIKB 104 |
| Court | King's Bench Division (Northern Ireland) |
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Neutral Citation No: [2023] NIKB 104
Judgment: approved by the Court for handing down
(subject to editorial corrections)*
Ref: HUM12306
Delivered: 26/10/2023
IN THE HIGH COURT OF JUSTICE IN NORTHERN IRELAND
___________
KING’S BENCH DIVISION
(JUDICIAL REVIEW)
___________
IN THE MATTER OF AN APPLICATION BY C SHORT LIMITED
FOR LEAVE TO APPLY FOR JUDICIAL REVIEW
___________
John Larkin KC & Joseph O’Keeffe (instructed by Tiernans) for the Applicant
Joseph Kennedy (instructed by the Crown Solicitor’s Office) for the Proposed
Respondent
___________
HUMPHREYS J
Introduction
[1] The applicant is a limited liability company which has traded as a Money
Service Business (‘MSB’) since 2008. Cathal Short is the sole director and
shareholder of the company.
[2] This application for leave to apply for judicial review arises out of decisions
made by His Majesty’s Revenue and Customs (‘HMRC’), the proposed respondent,
on 18 July 2023, whereby it was determined that:
(i) Cathal Short was not a Fit and Proper Person (‘FPP’) to hold a relevant
position within an MSB; and
(ii) The registration of the applicant company as an MSB be cancelled.
[3] Both these decisions have been appealed to the First-tier Tribunal (Tax
Chamber) (‘FTT’) by way of notices of appeal dated 19 July 2023. Expedition has
been sought in respect of the appeals, but no dates yet fixed for hearing.
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[4] Following the filing of these notices, the solicitor acting for the applicant
wrote to HMRC stating that there appeared to be no impediment to the company
continuing to trade pending the appeal. HMRC replied on 8 September 2023:
“This letter is to inform that despite the decision being
under appeal, it remains that, effective 18 July 2023, C.
Short Ltd is no longer registered with HMRC for Anti-
Money Laundering Supervision (AMLS). Therefore, C.
Short Ltd is not supervised for AMLS and it must not
carry out relevant activity.”
[5] This quickly prompted pre-action correspondence from the applicant’s
solicitor and in the absence of a reconsideration by HMRC, an application for leave
to apply for judicial review was issued on 19 September 2023. This seeks to impugn
both the FPP decision and the decision to cancel the applicant’s registration , and also
the refusal to permit the applicant to trade pending the outcome of the appeals to the
FTT.
Operation Concentric
[6] Between 2009 and 2012, an organised crime gang (‘OCG’) was responsible for
a tax fraud which exploited the Construction Industry Scheme (‘CIS’) to enable sub-
contractors to evade the payment of tax. The fraud involved the creation of sham
companies which would receive payment in respect of construction works carried
out but then become insolvent before any tax was paid to HMRC. The applicant’s
premises were searched in March 2012 by the criminal investigation team and a
number of documents seized.
[7] After an extensive investigation, known as Operation Concentric, some 37
individuals were charged in July 2018 with offences arising out of and connected
with the fraudulent scheme. Cathal Short was not charged with conspiracy to cheat
the public revenue but with two counts under the Proceeds of Crime Act 2002,
namely converting criminal property and failing to disclose money laundering by a
nominated officer. The latter charge was dismissed by Colton J and Mr Short
pleaded not guilty to converting criminal property.
[8] The charges against all other defendants have now been dealt with, only the
case against Mr Short remains and a date for his trial has not yet been fixed. He
maintains that he is not guilty of the offence alleged.
[9] The circumstances of the alleged offending relate to the cashing of cheques by
the applicant MSB for and on behalf of various Belfast-based construction
contractors. Through a mutual business acquaintance, Mr Short was introduced to
Francis Devlin who carried out accountancy and pay roll functions for
subcontractors. The companies in question drew cheques on major retail banks and
the applicant cashed these and provided the funds to Mr Devlin or his
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