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R v Redmond, Court of Appeal
The taxpayer was found guilty in 2006 of possessing contraband cigarettes. He was sentenced to a prison sentence, and subsequently appealed against a confiscation order.
The question arose as to the extent to which the taxpayer was liable to pay VAT on the illegal cigarettes, and the amount of tax potentially due.
The Court of Appeal found it had been established that the taxpayer had not paid the duty on the cigarettes and therefore was liable to VAT on the goods. The tax would be payable on the value of the cigarettes and on the amount of excise duty chargeable on their importation.
The original confiscation was quashed and a fresh one made in the amount decreed by the court.
