TC09158 - [2024] UKFTT 00369 (TC)

On 3 August 2012, a load of alcohol was said to have been collected from the Appellant’s premises by R.G. Bassett & Sons Ltd (“Bassett & Sons”) and delivered to Ascos Cash & Carry Ltd (t/a Shiraz Cash & Carry) (“Ascos”), as set out in a consignment note.

On 13 August 2012 Abbey Logistics Group Ltd (“Abbey Logistics”) stated that they had received instructions from CJM Logistics Ltd (“CJM”) to collect a load of alcohol from the Appellant’s premises. The driver at the time was advised that the load was not on site and he was later advised that the load was at a different location in Peterborough.

During these supply chain checks, it was discovered that CJM were supplying haulage services to Ascos. Paperwork uplifted from CJM showed that the work was subcontracted to several companies. Included were invoices relating to the collections on 3 August 2012, 13 August 2012 and 15 August 2012.

On 15 August 2012, Custom Haulage Ltd (“Custom Haulage”) stated that they had collected a load of alcohol from the Appellant’s premises, as set out in a consignment note. On 6 February 2013, Officer Idowu issued a referral form, requesting a visit to Custom Haulage to attain information on the 15 August 2012 collection. Custom Haulage provided tracking information for their vehicle.This information was reported back to Officer Idowu in a visit report, dated 12 March 2013.

On 28 February 2013, HMRC (Officer Horsfield) visited Custom Haulage and spoke to Scott Hepworth. Mr Hepworth explained that he had received instructions from an individual known only as Mike, from CJM, but that he did not know that alcohol was being collected until his driver arrived at the collection address and collected, and delivered, 26 pallets of mixed beer. Pursuant to company policy, the driver was required to complete a delivery sheet as no delivery paperwork was said to have been provided to the driver. The delivery sheet showed that alcohol had been collected from the Appellant’s premises and delivered to Expo Cash & Carry Ltd (“Expo”). Mr Hepworth confirmed that the invoice for the transportation was paid in November 2012.

On 27 September 2013 Officer Idowu raised a referral for the Appellant to gather information for the case on Ascos, requesting details be gathered on the collections from the Appellant’s site.

On 22 January 2014, Officer Idowu visited Abbey Logistics, in relation to the collection on 13 August 2012, and spoke to Stephen Farrell (Director). Mr Farrell explained that as a haulier, they would collect goods and move them. He added that sometimes paperwork was provided, but sometimes it was not. Following this meeting, Stewart Allerton provided a witness statement, signed 22 August 2014, stating that he had been asked to collect a load from the Appellant. On arrival, he was told that the load should be picked up from an alternative location in Peterborough. The load turned out to be alcohol.

On 2 May 2014, HMRC visited Bassett & Sons where they spoke to Mr Wayne Bentley. Mr Bentley noted that on 3 August 2012, he was instructed to collect an unidentified load from the Appellant. He explained that he had to wait until a vehicle bearing Irish number plates arrived and a load was transferred to his vehicle (a mixture of beers and wines), but that no consignment note was provided to him. On the same date, HMRC issued a notice of assessment to Fios Cash & Carry Ltd (“Fios”) in respect of purchases and sales of alcohol made by Ascos between April and November 2012. This is because supply chain checks made by HMRC into the alcohol purchased by Ascos and Fios were unable to find evidence of duty payment, resulting in assessments for unpaid excise duty to Fios for £1,584,973, and to Ascos for £449,510.