Landlords to be responsible for tenants tobacco tax evasion?

Landlords to be responsible for tenants tobacco tax evasion?

8:25 AM, 3rd March 2017, About 7 years ago 66

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Just received the following from Local Landlords Association (Devon);

HMRC consultation on preventing tobacco duty evasion: property implications

HM Revenue & Customs (HMRC) has published a consultation on proposals to tackle tobacco duty evasion and other excise duty evasion. This follows an informal consultation in which several respondents suggested imposing a duty of care on landlords where there was evasion.

Property practitioners will be interested to note that the consultation includes two key proposals (in section 6):

  • That HMRC would write to landlords and landowners associations asking them to voluntarily add a clause to their standard leases prohibiting illicit tobacco trading and other illicit excise trading.
  • That there would be new legislation imposing a duty of care on landlords and landowners of properties used in tobacco (or other excise duty) fraud. They would be under a duty of care to ensure that their properties are not used to evade duty, and there would be a civil penalty for non-compliance with this duty.

There would be a defence for landlords or landowners who took reasonable steps to prevent future wrongdoings in their properties. For example, there would be a defence where:

  • The relevant lease provides for termination where there is any illicit tobacco trading (or any other illicit excise activity), and the landlord evicts anyone who subsequently violates these provisions.
  • Landlords conduct periodic checks on their premises.
  • The consultation also seeks views on what reasonable steps landlords and landowners could be expected to take to address the issue of illicit trade in their properties, as well as the possible sanctions HMRC could apply to landlords and landowners who had not taken such adequate steps.

The consultation will close on 12 May 2017.

Source: HMRC: Open consultation: Sanctions to tackle tobacco duty evasion and other excise duty evasion (17 February 2017).

Is this another case of ‘Passing the buck ‘ and making Landlords do the Job for the HMRC ?

Mike


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Comments

Gromit

18:54 PM, 4th March 2017, About 7 years ago

Reply to the comment left by "Gary Dully" at "04/03/2017 - 18:17":

".......the body fluids from Asda."

Gosh they sell everything at Asda?

Gary Dully

21:58 PM, 4th March 2017, About 7 years ago

Reply to the comment left by "Barry Fitzpatrick" at "04/03/2017 - 18:54":

The kitty litter was from Asda, it was the nearest thing to those liquid sucker upper granules they use in garages with liquid spills.

It was suggested by the coroner's office.

The smell of the body fluid was appalling, though, it lasted for days, despite using Fabreze and Oust..

Seething Landlord

1:02 AM, 5th March 2017, About 7 years ago

I have just read the consultation document and whilst it's not entirely clear it appears that it is probably landlords of retail premises that they have in view rather than private landlords.

TheMaluka

8:04 AM, 5th March 2017, About 7 years ago

Reply to the comment left by "Gary Dully" at "04/03/2017 - 21:58":

For more than a decade I have run a paperless office, any paper which comes my way is digitised and then securely shredded using a microshredder. This reduces sheets of paper to the consistency of coarse sawdust. In addition to being an excellent deodoriser of kitchen garbage bins (a handful added once a day) it is an excellent product for mopping up liquid spills and is a free by-product of a paperless office.
Go paperless and be prepared for whatever a tenant throws your way.

terry sullivan

8:08 AM, 5th March 2017, About 7 years ago

Reply to the comment left by "Seething Landlord" at "05/03/2017 - 01:02":

so much legislation is poorly drafted and can be used in lots of ways

Michael Barnes

16:46 PM, 5th March 2017, About 7 years ago

Reply to the comment left by "Seething Landlord" at "05/03/2017 - 01:02":

It seems that only SL and I can be bothered to determine the facts before commenting.

The consultation document (at https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/592228/170216_Formal_Sanctions_Consultation_FINAL.PDF) identifies at para 6.2 that they are tackling sales through retail outlets.

Paragraph 6.6 states The duty of care would only arise once the landlord or landowner has been notified that the tenant has evaded tobacco duty (or other excise duty).

Therefore it is only proposing that landlords (of retail premises) need to do anything when they have been notified.

Grumpy Doug

18:14 PM, 5th March 2017, About 7 years ago

Reply to the comment left by "Michael Barnes" at "05/03/2017 - 16:46":

Hi Michael. I also read that but hey, the thread was getting interesting! Seriously though, with this lot, when they start on something, some bright spark in HMRC will suggest that it gets extended to all landlords. Thin end of the wedge and all that ....

Gromit

18:54 PM, 5th March 2017, About 7 years ago

Reply to the comment left by "Michael Barnes" at "05/03/2017 - 16:46":

I've have also read it and my understanding is if they are selling from your property.

TheMaluka

19:56 PM, 5th March 2017, About 7 years ago

Whatever the landlords duty to report tenants we should all be thankful that tenants are not yet required to report landlords for selling clandestine goods ! ! ! !

Colin Dartnell

20:10 PM, 5th March 2017, About 7 years ago

Reply to the comment left by "Michael Barnes" at "05/03/2017 - 16:46":

Sorry Michael but I COULD be bothered to determine the facts before commenting.

It says in paragraph 6.6 as you have noted “The duty of care would only arise …etc…”

Even when the landlord has been notified, it is still the duty of care of the authorities NOT the landlord, to deal with the illicit activities. Are we to become customs, HMRC and police? It is not our duty of care under any circumstances. We can only warn the tenant as to their future position, re tenancy, but that’s where it ends.

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