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Chapter MLR3C8595

Document Cited authorities 1 Cited in Related
Vincent
Published date26 April 2016
Record NumberMLR3C8595

During visits to check compliance with the Regulations, Officers may inadvertently come across information that represents a risk of tax evasion or an undeclared tax avoidance schemes. For example, during a visit to a HVD “off record” cash sales are identified.

Again it is important to draw a distinction between risks associated with the activity of the business and risks associated with its customer’s especially under any circumstances where legal privilege could apply. See MLR3C8580 for further details.

Tax evasion is strictly a criminal offence but is normally subject to a civil and not a criminal investigation by HMRC.

It is more likely that COfficers will come across potential tax evasion relating to Direct Tax, VAT or Excise Duties.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

Even if there are grounds for suspicion that the customers of a business are involved in tax evasion Officers must proceed with great caution. In practice it will be not be possible to identify tax evasion by checking CDD on customer’s transactions or business relationships at the level required to evaluate MLR compliance. Officers must not under any circumstances attempt to obtain additional details for any other purpose other than ensuring the business is compliance with the Regulations.

If a higher level of information is provided by a business which in...

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