AC-2025-LON-002199 - [2025] EWHC 2057 (Admin)

Fecha: 01-Ago-2025

Financial Analysis: 2010 to 2018

Financial Analysis: 2010 to 2018

A civil tax compliance investigation began in September 2018, covering April 2010 onwards. Banking material for 14 accounts held by the Respondents was obtained via a without notice application to the tax tribunal, covering April 2010 to December 2018. Analysis of these accounts by Mr Woollard revealed:

Credits totalling £266,690.02 in 2013/2014 and £678,186.10 in 2014/2015 across personal accounts, with the provenance of the payments often unclear due to insufficient detail.

ii)

Of the 2014/2015 credits, £542,609.66 concerned transfers from third parties.

iii)

Expenditure exceeding £1 million on ‘high-end’ prestige designers and retailers between 2010/2011 and 2017/2018.

iv)

Refund payments in relation to Tax-Free Shopping totalling £26,173.19 (2010/2011 to 2017/2018).

Numerous cash deposits were made across different UK locations, with multiple deposits often occurring on the same day in different towns and cities. During this period, 512 cash deposits totalling £544,451.00 were credited to their personal accounts.

vi)

Some 367 cash withdrawals totalling £158,073.00 were debited, sometimes with multiple withdrawals being made on the same day.

10.

The high-end transactions, postage fees totalling £32,438.99, and PayPal activity (credits of £33,987.21, debits of £79,004.16) for 2010-2018, constitute unexplained wealth and are consistent with Daigou schemes. The amount spent on high-end goods and postage substantially exceeds the Respondents declared income. Neither Respondent declared business income in relation to the buying, selling, or likely exporting of high-end goods to China. The activity of the Respondents between 2010 and 2018 is consistent with Chinese Underground Banking and the operation of an unregistered MSB to launder criminal funds using a ‘Daigou’ mechanism as an informal value transfer scheme (“IVTS”).