Sandys Superstars

[mrbobbit]

Apols if this this has been covered before, but I was wondering what was going on............


A quick Google search gave me this: External Link/Members Only


I assume money laundering actually means tax avoidance.

[NigelF]

Apols if this this has been covered before, but I was wondering what was going on............


A quick Google search gave me this: External Link/Members Only


I assume money laundering actually means tax avoidance.

It has been covered, see here: https://www.ukpunting.com/index.php?topic=180476.0

A minor point, tax avoidance is legal, it's tax evasion that's illegal.

You raise an interesting point about the money laundering though, I'm going to post about it in the the thread I linked. Generally, I was under the impression that money laundering is actually an effort to pay tax (it's just that the money has come from illegal/illegitimate sources). The reason you'd launder money is because otherwise you'd have too much cash that you can't put in the bank without arousing suspicion. You would also be unable to explain your assets to HMRC if you didn't appear to have much income - hence you'd launder money.

[mrbobbit]

I stand corrected on both counts, sir!! But I assume it was an HMRC driven closedown.

It was a huge cash operation, so I guess HMRC took an interest.

[NigelF]

I stand corrected on both counts, sir!! But I assume it was an HMRC driven closedown.

Yes, I think you're right. It's not totally clear though. I've just edited my post so have a re-read of that and then have a look through the thread I linked.

[mrbobbit]

More will come out when the big court case starts soon.

[NigelF]

More will come out when the big court case starts soon.

Yes, it should be interesting to see what comes out. I've now posted in the other thread as well.

Nonetheless, it's a shame Sandy's is closed because it was (by most accounts) an industry-leading, well-run parlour and some of the ones that are left are much more "deserving" of being closed down.

[chrishornx]

You raise an interesting point about the money laundering though, I'm going to post about it in the the thread I linked. Generally, I was under the impression that money laundering is actually an effort to pay tax (it's just that the money has come from illegal/illegitimate sources). The reason you'd launder money is because otherwise you'd have too much cash that you can't put in the bank without arousing suspicion. You would also be unable to explain your assets to HMRC if you didn't appear to have much income - hence you'd launder money.

I think you have nearly hit the spot there Nigel but I think that money laundering is about making 'dirty money ' clean by legitimising it rather than actually paying tax, although that may well, in many cases, be a by-product. Buy a £20,000 diamond then sell it for £18,000 on the second hand market, buy a car for £18,000 and sell it 6 months later for £16,000 and £20k dirty becomes £16,000 clear without any tax issue (I think) 

[Beamer]

Two threads on the same topic. Shouldn't this one be added to the existing one?

[NigelF]

I think you have nearly hit the spot there Nigel but I think that money laundering is about making 'dirty money ' clean by legitimising it rather than actually paying tax, although that may well, in many cases, be a by-product. Buy a £20,000 diamond then sell it for £18,000 on the second hand market, buy a car for £18,000 and sell it 6 months later for £16,000 and £20k dirty becomes £16,000 clear without any tax issue (I think)

Yes, you're quite right. Paying tax is a by-product and not the main aim. I think you're right with your examples but I think large cash purchases (above 10k) have to be reported although I'm not sure (I know that businesses that do accept such large amounts have to be registered and scrutinised as "high value dealers" with HMRC under money laundering regulations) but at any rate I imagine there will be some places that don't bother.

[HKS15]

More will come out when the big court case starts soon.

Which is on Tuesday 20th, just for anyone wondering. I would have been tempted to go and observe if I were closer, will defo be an interesting case.

[smiths]

It has been covered, see here: https://www.ukpunting.com/index.php?topic=180476.0

A minor point, tax avoidance is legal, it's tax evasion that's illegal.

You raise an interesting point about the money laundering though, I'm going to post about it in the the thread I linked. Generally, I was under the impression that money laundering is actually an effort to pay tax (it's just that the money has come from illegal/illegitimate sources). The reason you'd launder money is because otherwise you'd have too much cash that you can't put in the bank without arousing suspicion. You would also be unable to explain your assets to HMRC if you didn't appear to have much income - hence you'd launder money.

Yes its an effort by crooks to legitimise their income basically, as I said on the other thread it could be through a legit business so on the surface it looks like they pay tax and the correct amount, but only on the income they declare through the legit business obviously. It is the case that nowadays large amounts of cash attract interest and that's the problem/challenge pimps who make a lot like Sandys must of have. How to wash it for it to become legit money and assets.

[King Kenny]

Any business that takes cash from anonymous customers for a product that is difficult to verify has the potential to launder cash.

So, a business that trades in new cars will only be able to declare a profit based on the difference between the cost of cars purchased and the amount they sold them for.

On the other hand a massage parlour can claim to have had hundreds of customers each day - limited only by the number of rooms they have and 24 hours in a day. Impossible after the event to verify how many punters they had in, so impossible to prove that some of these were fictitious and that some of the "income" declared was dodgy money given a legitimate "history". Sunbed parlours are similar apparently. Just keep the sun beds on all day, show HMRC your electricity bill, and who's to say you never had paying customers in all day?

[Gordon Bennett]

In Breaking Bad they ran a big car wash to launder their money didn't they? Round my way it's tanning salons that gangsters own (via their molls) to clean their money.