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Where Taxpayers and Advisers Meet

Tax Evasion of 300k

Joined:Wed Aug 06, 2008 3:39 pm

Postby steve7 » Sun Nov 19, 2006 11:53 am

I reported someone for tax evasion at the beginning of July this year. I gave the IRS his name address and name of his company. I know that he is not registered for tax and hasn't paid any tax. His web site has made a him a fortune he has also stolen allot of money from his customers because he closed his web site down, all his customers are complaining in on-line forums calling him a scamer. The IRS still havent cotacted him why are they taking so long is this normal, seven month have past now?

The Hippo
Joined:Wed Aug 06, 2008 3:43 pm

Postby The Hippo » Sun Nov 19, 2006 12:17 pm

Several points here:

Firstly surely you do not know if the IRS has contacted him or not, such contact would be confidential.

Secondly whether he has paid tax or not and in what juridstiction is a matter that you are surely just speculating about.

Thirdly companies can go bust for very good reasons, evan after they have "scammed" people. it does not mean that there is tax to pay.

Fourthly let it go, it is actually none of your business, in any event 7 months is no time at all when it comes to tax enquiries.

Bob Jones
Joined:Wed Aug 06, 2008 3:43 pm

Postby Bob Jones » Sun Nov 19, 2006 3:06 pm

By IRS I assume you mean HMRC. In my 39 years with the Inland Revenue - now HMRC - I lost count of the number of informants letters/phone calls etc that passed across my desk. In this case you refer to a company being involved. If I was still in the employ of HMRC and in July I received information that a company was trading I would first of all check the CT computer record - you say he is not registered - how do you know that? If he has a company then it has to be registered with Companies House and unless it is a company being held "on the shelf" then HMRC will be aware of it ... On the assumption that it is a company and you informed HMRC in July that it was trading in July then the note would be held on file until the accounts including that period are submitted - or not submitted - the company has 12 months from the end of the accounting perod to submit accounts to HMRC .... so ... just say that HMRC have a record of the Company - and you have informed that the Company is up to no good as at July 2006 -- and the company produces accounts to 31 December each year. Then you are casting a doubt on the accounts to 31 December 2006 which are not with HMRC as we haven't reached the year end and may not be with HMRC till 31 December 2007 ...


Joined:Wed Aug 06, 2008 3:39 pm

Postby steve7 » Sun Nov 19, 2006 5:45 pm

He was runing a web site for about six months and made 300k by luck i am sure he hasnt paid any tax. I reported him in May to HMRC and they have done nothing is this normal?

Joined:Wed Aug 06, 2008 3:39 pm

Postby steve7 » Sun Nov 19, 2006 6:39 pm

He has been running his web site for 4 years making about £80 pounds a week in April this year he got lucky and made 300k in one month then closed the web site down.I know for sure he hasn't declared any of his income. its been about seven months since i reported him.
Why do the HMRC have a Tax evasion hot line and do nothing when you make a complaint?

Joined:Wed Aug 06, 2008 3:40 pm

Postby al_eebee » Mon Nov 20, 2006 12:19 am

How do you know for sure nothing has happened?

In any event if it was only April then there is probably still time for accounts & tax comps to be prepared and submitted and tax paid.

Unless you know him personally and he moans to you that HMRC are giving him grief, you will probably never know. Just possibly it will become a matter of public record because HMRC take the ultimate sanction & prosecute, otherwise you are unlikely to find out.

As others have said, you have made your report, so it is on record with HMRC. Leave it at that & don't let it eat at you & ruin your life!

Joined:Wed Aug 06, 2008 3:22 pm

Postby King_Maker » Mon Nov 20, 2006 12:45 am

His company may have a Year End of 31 March, so the April 2006 windfall should show up in the accounts for the year ending 31 March 2007.

Those accounts have to be filed at Companies House by 31 January 2008 and be sent to HMRC witha CT Return by April 2008.

Joined:Wed Aug 06, 2008 3:39 pm

Postby steve7 » Mon Nov 20, 2006 6:54 am

He hasnt even told HMRC about is web site which he has been running of years.

Joined:Wed Aug 06, 2008 3:40 pm

Postby al_eebee » Mon Nov 20, 2006 2:22 pm

So which is it:
"...runing a web site for about six months"
"...web site which he has been running of years"

Whichever, you have done your civic duty in making the report. Leave it at that.

You have been told that it is quite possible that an enquiry will not be opened immediately, it depends on the accounting date - assuming a limited company of which HMRC would have been aware.

You say the windfall is only recent and it is always possible that he has been making returns, but because the sums involved were small no profits.

For all you know HMRC have started the ball rolling because it is not a limited company & they did not know about the business. BUT you will almost certainly never know because they will not publish that fact.

Joined:Fri Dec 04, 2009 2:12 pm

Re: Tax Evasion of 300k

Postby JON100 » Fri Dec 04, 2009 2:16 pm

I also reported someone for tax evasion in Taunton and nothing has been done. He buys and sells cars and was a partner in a business that was not even a registered business in his name for VAT. Everything he makes is in cash, his staff were paid cash in hand and he always has wads of cash but nothing is being done. It just does not pay to work for someone else in this country, when the self employed can get away with this.

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