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Not fit and proper

13 January 2015
Issue: 4484 / Categories: Tax cases , Admin , Companies , Investigations

M Hunt (TC4183)

Serviced Office Company Ltd applied in February 2013 to register as a trust or service company under Money Laundering Regulations (MLR) 2007.

The taxpayer applied for a fit-and-proper test as sole shareholder of the business. He failed because he was jailed in 1993 for conspiracy to defraud and was disqualified from being a company director for ten years. HMRC believed he represented a higher risk of money laundering.

The taxpayer transferred his shares to his wife who passed the fit-and-proper test allowing Serviced Office Company Ltd to be registered under MLR.

The taxpayer wanted to put the shares back into his name. He requested a review of the Revenue’s decision on the basis his conviction was more than 20 years ago. He said:

“The mission of HM Prison Service is to rehabilitate prisoners and release them as law-abiding citizens. I consider that I have satisfied...

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