Loophole For Large -Scale Criminal Money Laundering

It's probably more to do with the fact that the very wealthy can afford specialist lawyers and accountants to sort all this out for them.
Whilst that is true it is certainly the case that the tax laws are written by consultants from the big accountancy firms as the government does not have the skill set.

To paraphrase the old phrase "it takes a thief to catch a thief" it also takes a thief to know how to thieve big time.
 
You don't know that.
Just look around the UK today. The nicest, most well maintained building in many areas is the local mosque.
The reason is that the local Muslim community pay for it.

Just like the local white British community used to pay for their church, but now they don't.
I do know that.

Do you think all those shiny mosques are built with legitimate tax/NI/employer contributed cash. Or is it more likely the funds were sourced from taxi cabs, fast food shops, Rachman style landlordism and coerced contributions.

I know you are a new guy here but it is generally considered a good idea not to live up to your user name quite so rapidly.
 

ExREME.TECH

War Hero
I do know that.

Do you think all those shiny mosques are built with legitimate tax/NI/employer contributed cash. Or is it more likely the funds were sourced from taxi cabs, fast food shops, Rachman style landlordism and coerced contributions.

I know you are a new guy here but it is generally considered a good idea not to live up to your user name quite so rapidly.
KSA more like
 

Glue_Sniffer

Old-Salt
The penny ante stakes bunged abroad through MSBs pales in comparison to the hundreds of billions siphoned through private banks, international banks, brass plate LLCs and even the big high street banks (once it has been cleaned up a bit).

Year after year after year.

Not for nothing is London the centre of Russian banking. Plus all the 'Stans. Plus all the other corrupt and criminal bastards around the world.

The Sunday Times published their Rich List two days ago. Somehow they didn't have Putin there as the richest man in Britain. Serious error.

Virtually every cent, penny, euro and rouble is untouchable.

Private Eye did an article on this a few years ago. There is a crappy little terraced house in Cardiff that is the head office of hundreds of offshore companies, mostly LLCs. Yeah, right, nothing to see here.
I believe this dates back to the 1990s, when the USA was happy to see a kleptocracy replace Soviet communism. The City of London needed the work.

This was before the "New Cold War" developed. Now the UK has "unexplained money" regulations.

The problem for the UK is that the City of London and financial services have pretty much kept the country going for the last 50 years. With North Sea oil running out, there's not a lot else the UK has to offer the world.

If the City of London doesn't take this financial dealing, you can bet Frankfurt or Zurich will...
 

philc

LE
An old friend has just sold a property she owned in N Yorks. The buyer is a Swiss outfit, with an office/base in the delightful old market town of Wolverhampton (really) and bought the property unseen. Despite not even seeing it the buyer paid asking price. I'm sure the cash is all perfectly clean (she couldn't care less).

There are other reasons why foreigners purchase properties in the UK. One might ask oneself why Chinese companies have purchased property in Barrow-In-Furness. Maybe it is the proximity to the Lake District or the delights of ye olde English town of Barrow. Can't be anything else. Can it?
We have had Chinese and Singapore money buy hotels is Scarborough, they are good long term bargains, yes but how they crop up on those type of peoples radar?
 

Glue_Sniffer

Old-Salt
I do know that.

Do you think all those shiny mosques are built with legitimate tax/NI/employer contributed cash. Or is it more likely the funds were sourced from taxi cabs, fast food shops, Rachman style landlordism and coerced contributions.

I know you are a new guy here but it is generally considered a good idea not to live up to your user name quite so rapidly.
If the mosque is set up as a charity, then donations would be tax deductible anyway.
 
I do know that.

Do you think all those shiny mosques are built with legitimate tax/NI/employer contributed cash. Or is it more likely the funds were sourced from taxi cabs, fast food shops, Rachman style landlordism and coerced contributions.

I know you are a new guy here but it is generally considered a good idea not to live up to your user name quite so rapidly.
I wouldn't be so sure about "new boy", rumour has it it's just another trolling sock.
 

Glue_Sniffer

Old-Salt
We have had Chinese and Singapore money buy hotels is Scarborough, they are good long term bargains, yes but how they crop up on those type of peoples radar?
Advertised overseas probably.
Just like residential property in London was being heavily marketed in Asia, prior to the addition SDLT - which did not apply to commercial property.
 
For a good overview of foreigners acquiring UK property the Private Eye publication "Selling England By The Pound" is well worth a read.

To see who has bought what there is a searchable map available here:

And that is just what is discoverable.
 

philc

LE
It occurs to me that one of the biggest money laundering techniques is property.

Buy a high value building and sit on it. The property quietly increases in value and when it's sold the original purchase cash is shiny new and any capital gains tax may well be covered by the increased value of the property. Plus any money made from renting it out.

Of course this would only be viable to dodgy governments and serious crooks is a fairly obvious scam for massive scale money laundering and probably quite easy to police if desired, so obviously doesn't happen
I did read high Art, think masterpieces and modern art is a good way of flushing money, auction houses take any currency, the asset is movable and auction houses are global, think Christie's in HK. You buy something for silly money off your mate and a year later sell it back.
 

Glue_Sniffer

Old-Salt
I do know that.

Do you think all those shiny mosques are built with legitimate tax/NI/employer contributed cash. Or is it more likely the funds were sourced from taxi cabs, fast food shops, Rachman style landlordism and coerced contributions.

I know you are a new guy here but it is generally considered a good idea not to live up to your user name quite so rapidly.
Slumlords are a problem, but it is a political decision to have a light touch private rental sector.
And there are plenty of white British slumlords..
 

Glue_Sniffer

Old-Salt
I did read high Art, think masterpieces and modern art is a good way of flushing money, auction houses take any currency, the asset is movable and auction houses are global, think Christie's in HK. You buy something for silly money off your mate and a year later sell it back.
Yes, fine art is probably one of the most opaque (but fascinating) markets around.
Still some examples kept in Russia, taken from Nazi Germany.
As you say, one of the few bearer assets left.
 

Chef

LE
I did read high Art, think masterpieces and modern art is a good way of flushing money, auction houses take any currency, the asset is movable and auction houses are global, think Christie's in HK. You buy something for silly money off your mate and a year later sell it back.
Good point. With the added attraction that spending big bucks on a piece increases its' value. I believe that part of Saatchi's modus operandi was to buy large amounts of an artist's work and exhibit it. Other arty types bought what was left and the vicious circle began. The works became expensive because they were hard to get because Saatchi already had the bulk of them and his collection became more expensive because people were paying top dollar for what was left and so on.

Not that Mr Saatchi has need of laundering services. But he has got enough cash to indulge his passions. I mean a pickled fish, what's not to love?
 

endure

GCM
For a good overview of foreigners acquiring UK property the Private Eye publication "Selling England By The Pound" is well worth a read.

To see who has bought what there is a searchable map available here:

And that is just what is discoverable.

Just had a look at my local area. Not much apart from a pub which was turned into a Tesco Express. Its proprietor is apparently a company in the British Virgin Islands who was mentioned in the Panama Papers.
 

Grownup_Rafbrat

LE
Book Reviewer
KSA more like
I often wonder what happened to the Saddam Hussein Mosques. Despite not being very much of the faith himself, he funded several in the UK for some reason...
 

Glue_Sniffer

Old-Salt
I often wonder what happened to the Saddam Hussein Mosques. Despite not being very much of the faith himself, he funded several in the UK for some reason...
Probably because despite being Baathist / Arab Nationalist, Iraq under Saddam maintained many links to the UK.
Obviously his big mistake was to try and sell oil in Euros, especially with a neoconservative pro war government in the USA at the time...
 

CanteenCowboy

LE
Book Reviewer
Whilst that is true it is certainly the case that the tax laws are written by consultants from the big accountancy firms as the government does not have the skill set.

To paraphrase the old phrase "it takes a thief to catch a thief" it also takes a thief to know how to thieve big time.
That’s not quite right. Most of the consultants you’re talking about are graduates of the Tax Academy, either paid for by their employers (usually one of the “big 4”) or a former HMRC employee headhunted by one of “big 4”. There is now regulations/incentives in place to try and stop/reduce that.
 

Glue_Sniffer

Old-Salt
It is the way of things, Grasshopper.

Firearm laws in SA a case in point. Make the lives of the law abiding shooters, collectors and firearm owners bloody impossible while none of the legislation touches the fuckers who get illegal firearms from ANC arms caches, buy them from illegal immigrants or just rent them from cops.

Criminals are effectively protected by the legislation that restricts the law abiding every step of the way.

This is the reason that so many people in the USA are opposed to gun control. And it is a legitimate argument. However, the tide is slowly turning in the USA. I expect the younger generation will bring in some form of gun control eventually.
 
Edited for brevity.

I've often wondered why the tax man can't stake out a nail bar for a few days and then correlate the number of observed customers going in with the reported takings for that time period.

As I believe one has to maintain records for a few years the same team(s) could do several premises and then hit them all a couple of months down the road. Thus keeping the element of surprise.

Unless of course they're already on the case.
I know a few business owners here, two of whom are in retail. At the end of every single business day, they have to conduct a full receipts/cash reconciliation (For each payment point and for the shop) as well as provide a list of all cash on hand by denomination. They have to print off a transaction list for the whole day, including every time the cash drawer opens but no sale is made. The Finanzamt has the right to turn up at any point and conduct an inspection/audit, even after business hours. This doesn't happen so often but then, when it does, you can get two or three visits in very short order.

There was a story about a local Italian ice-cream cafe owner who obviously made all sales at the table in cash. He had a habit, not confined to Italians, of not declaring all his sales. The Finanzamt caught him really easily. They looked at his running costs on his tax return, then looked at his declared sales and inventory for the same period. In essence he had claimed for the offset of the cost of purchase of (illustrative numbers) of 200,000 ice-cream cups and spoons, declared sales of 100,000 but only had 25,000 left on stock. Easy!
 

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