Landlords to be responsible for tenants tobacco tax evasion?
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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Member Since September 2016 - Comments: 2533 - Articles: 73
8:40 PM, 5th March 2017, About 9 years ago
Reply to the comment left by “David Price” at “05/03/2017 – 19:56“:
Been on the whacky baccy again, David?
Member Since July 2013 - Comments: 1434
9:32 PM, 5th March 2017, About 9 years ago
Reply to the comment left by “Barry Fitzpatrick” at “05/03/2017 – 18:54“:
“I’ve have also read it and my understanding is if they are selling from your property.”
Please explain how you came to that understanding.
I am open to persuasion.
Member Since August 2013 - Comments: 185
10:08 PM, 5th March 2017, About 9 years ago
Loving the exploding tenant comments on this thread…!! My closest to that had to be the one which my plumber nicknamed “Luke the Puke” (he nicknames em all!) – anyway, this chap was a heroin addict, and every time he got high he threw up in the bath for some reason… Maybe he had some sort of pride in accumulating a bath full of puke … Anyway, when we finally got rid of him, it was sixty bin bags full of clothing and food debris, mattress and carpet had to be removed and burned, repaint, re-carpet, and use of a large paint scraper to reclaim the bath!! I bet they dont teach them all that on the squeaky clean NLA courses!!
Member Since September 2013 - Comments: 534 - Articles: 2
11:36 PM, 5th March 2017, About 9 years ago
I don’t think Gracie, my sniffer dog, will search the local canals.
Dog For Sale £9000 ONO
Looking for her new fur ever home.
I’ll end up trading her in for a frogmans outfit, for all the tobacco dumped and distilled vodka made by my East European tenants.
TWOJE ZDROWIE (Cheers!)
Member Since May 2015 - Comments: 2188 - Articles: 2
4:04 PM, 6th March 2017, About 9 years ago
Reply to the comment left by “Dr Rosalind Beck” at “05/03/2017 – 20:40“:
Ros you know I only have one vice and it’s not whacky baccy!
Member Since May 2015 - Comments: 2188 - Articles: 2
5:31 PM, 6th March 2017, About 9 years ago
Reply to the comment left by “Barry Fitzpatrick” at “04/03/2017 – 18:54“:
You have not been the only one to notice that Asda sell everything!
http://www.bbc.co.uk/news/uk-england-london-39179652