Successful Recovery of Cash Seized By HMRC
HMRC Revenue and Customs officers, police officers or other appropriate authority officers may seize cash exceeding one thousand pounds where there are reasonable grounds for suspecting that it constitutes recoverable property, represents the proceeds of crime or is intended for use in unlawful conduct.
The cash may initially be detained for up to forty-eight hours. However, the authorities will usually apply to the Magistrates’ Court for an Order extending the detention period.
An extension will usually be granted for a period of up to six months. Further extension Orders may subsequently be sought, allowing the cash to be detained for a total period of up to two years.
In one such case, the team at KANGS successfully secured the return of twenty-six thousand pounds which HMRC seized from our client pursuant to the Proceeds of Crime Act 2002 (POCA). Our client, an entrepreneur and company director, had been subjected to the seizure of the funds during a search of her home by HMRC.
The money was detained by HMRC for a period of six months in accordance with an Order which had been issued by the Magistrates’ Court but, following the expiry of that period, HMRC failed to apply to the Court for a further extension, as required by POCA.
Approximately ten weeks after the expiration of the Order, HMRC realised its error and, belatedly, applied to the Court for a fresh Order.
Nazaqat Maqsoom of KANGS explains the steps undertaken to successfully oppose this further application.
The Circumstances
During an entry and search of our client’s property by HMRC pursuant to ss.17 – 18 Police and Criminal Evidence Act 1984, she was arrested on suspicion of money laundering offences under POCA. Twenty-six thousand pounds was seized upon the suspicion that the funds represented the proceeds of crime.
Having obtained the requisite Order from the Magistrates’ Court authorising the detention of the cash for a period of six months, HMRC failed to apply to the Court for an extension of the Order within the timeframe set out in POCA. Upon discovering its error, it applied for a further Order extending the permitted period for detention of the cash.
How We Assisted Our Client Defeat the HMRC Application
Having advised our client that it would be appropriate to contest HMRC’s application on the basis that it constituted an unlawful abuse of process, the team at KANGS:
- examined and considered all relevant documents,
- attended upon our client discussing all of the relevant circumstances including the provenance of the disputed funds, and the probable reasoning behind HMRC’s suspicions,
- advised upon the nature of the evidence required to defeat HMRC’s Application and the procedural manner in which to proceed,
- collated and examined all of the evidence available to defeat the Application,
and attended the Hearing to represent our client who was unable to attend.
The Successful Outcome
At the Hearing, HMRC maintained that its conduct was reasonable and lawful, the Court disagreed and refused its Application upon the basis that:
- the errors resulting in delay were entirely attributable to HMRC,
- HMRC’s efforts to re-seize and detain the cash were unlawful, and
- granting the requested Order would be contrary to the intent of POCA.
Our client was, of course, absolutely delighted with this highly successful outcome.
How Can We Assist You?
KANGS has extensive experience, gained over many years, assisting clients subject to criminal and civil investigations of every nature including those pursuant to the Proceeds of Crime Act 2002.
Our solicitors have an established and respected reputation nationwide for their expertise in financial investigations and in particular HMRC investigations. They are recognised in leading directories such as Chambers UK and the Legal 500 as industry specialists in all aspects of fraud and financial crime.
If you are subject to cash seizure, a cash detention application or any other form of financial crime investigation, please do not hesitate to contact our team using the details below.
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through video conferencing or telephone.
Top ranked by legal directories Chambers UK and the Legal 500
