I watched a rather interesting programme last night about the attempts by various members of the WI to legalise brothels.One rather amusing fact came to light, when the reporter visited an illegal brothel in Dagenham. The owner is registered for VAT, and HMRC have happily advised her to register the business as a "massage parlour". The owner seemingly has had discussions with HMRC over their advice, and is adamant that the business should be registered as a brothel; ie HMRC know full well what is going on there.
Here is the "small issue", brothels are illegal (as absurd as that is). This means that HMRC, by knowingly collecting tax/VAT from a brothel, are knowingly receiving money from a criminal enterprise.
Errrmmmm...aren't their laws against that sort of thing?
Does this not mean that HMRC are in breach of the laws relating to the receipt of money from criminal activities and anti money laundering laws?
How is it that HMRC is allowed to tax and receive money from "criminals"?
Tax does have to be taxing.
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I guess that thanks to Messrs Brown and Darling having royally trashed the economy the government is broke (just like the rest of us) and so they're probably not too fussed about ethics, morality and the law; just so long as they can get a few extra quid to help them through this rough patch.
ReplyDeleteIf all else fails they could send John Prescott out after dark to mug a few folk - I think he would look the part in a hoodie ( ...that's if they do them in his size!!!).
ReplyDeleteFrom where did you get the impression that profits from an illegal activity were not taxable? This is settled law:
ReplyDeleteLindsay, Woodward and Hiscox v IR Commrs (1932) 18 TC 43.
Partridge v Mallandaine (1886) 2 TC 179.
IR Commrs v Aken [1990] BTC 352.
Mann v Nash (1932) 16 TC 523.
Southern v AB (1933) 18 TC 59.