Fraudster must pay tax

Failure to notify chargeability

In 1996 the taxpayer was charged with drug offences connected with a night club with which he was involved. He absconded to Cyprus before his trial.

In 2005 he attempted to transfer £1.5m from a Cypriot bank account to one in Thailand. But the payment was routed through London and intercepted. In 2009 he was arrested returned to the UK convicted and sentenced to five years in prison. After serving his sentence he was extradited to Cyprus for property fraud and was sentenced to 11 months in prison for illegal use of land.

In March 2012 the Serious and Organised Crime Agency (SOCA) (now the National Crime Agency (NCA)) was successful in its civil recovery action against the taxpayer in relation to the £1.5m. The agency then notified HMRC under the Proceeds of Crime Act 2002 s 317(2) that it...