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Gold smuggler thrown behind bars over £7m VAT evasion

by William Robins on Dec 14, 2012 at 14:08

Gold smuggler thrown behind bars over £7m VAT evasion

A gold smuggling jeweller who evaded over £7 million of VAT has been put behind bars for nine years.

Following an international investigation, HM Revenue & Customs (HMRC) discovered Chaudry Ali was buying gold in Dubai and bringing it to the UK via Frankfurt to avoid VAT payments over a two-year period.

Andrew Sackey, HMRC assistant director of criminal investigation, said: ‘Chaudry Ali was a 24-carat criminal. He systematically evaded millions of pounds of VAT in the hope of lining his pockets. Our officers worked tirelessly to catch him, and today’s sentence is the result of that hard work.’

HMRC said Ali had two couriers working for him. They bought large amounts of gold jewellery in Dubai then fly to Frankfurt. They would meet Ali in an airside lounge where they would swap cases.

Ali would fly back to the UK passing through the EU entry channel at UK arrivals. HMRC said he carried paperwork stating that he was a legitimate VAT-registered jewellery trader in case he was stopped at customs.

Goods traded between EU countries are not subject to VAT, so by appearing to have sourced the gold in Frankfurt, Ali would have no tax to pay.

3 comments so far. Why not have your say?

Richard Hardy

Dec 14, 2012 at 14:14

Will they be gold bars?

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vern via mobile

Dec 14, 2012 at 16:12

The whole gold and silver price manipulation is nothing short of organised crime! So banks and the very wealthy can buy as much as they can as cheap as they can. What prison term do these people get? Nadda....nothing.....so the guy got caught avoiding tax, fair enough. But there remains one rule for the common man while the untouchable can do what they like!.

If gold price was not manipulated and was just supply and demand price, the price would be $2000+ USD per oz right now!

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FairTrader via mobile

Dec 16, 2012 at 15:58

An importer games the EU tax system and goes to jail. Amazon games the EU tax system and all is swell..

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