W Accountancy Limited - Chartered Acountants

Accountancy in Enfield and Woking

                 Enfield  0208 804 0478

Woking  01483 797901

 

Archives >

Spring 2004 Newsletter

 

                          Content
Put not your trust in money...
Splitting up
Going to the Zoo
Bad company?
Big stick
www.regs.com
Car - VAT car?
Invoice rules
Doctor, doctor
One hat or two?
My money lies over the ocean...
One careful owner
There's no business
Calling all theatres
Hell hath no fury...
How unreasonable?
Key-man policies
Time travel?
Flat VAT
Dunfar

Hell hath no fury...

...like a divorcing couple and their lawyers. In a recent case, the wife told her solicitor that she wanted half of everything, including the offshore bank account that her husband hadn't told the authorities about. The lawyers realised that helping to carve up possibly illegal money would make them party to money-laundering, and they had to go to court to ask a judge for instructions. The judge said that they should report the situation to the National Criminal Intelligence Service, in spite of the tradition of legal privilege which protects confidentiality.

New rules on money laundering come into force on 1 March, and it's likely that we will see more and more cases of this sort. Professionals are required to report any suspicion that the proceeds of crime - including tax evasion, as well as every other sort - are being "laundered" (generally moved around so that they appear to come from a legitimate source). The National Criminal Intelligence Service is likely to be swamped with reports, because the penalties for failing to report are severe - the professional could go to jail, even if there was no crime in the first place (we can only hope that this is sufficiently ridiculous to be unlikely, but it appears to be the law).

For the future, then, it will be about as wise to joke about tax evasion to your accountant as it is to say you have a bomb in your luggage when passing through airport security. Some things aren't funny any more.

 
W Accountancy Limited is a member of the Institute of Chartered Accountants in England & Wales
Copyright W Accountancy Ltd 2006, All rights reserved.