Criminal customs

A less-than-welcome decision for businesses, under the Human Rights Act, could move cases of tax evasion from civil to criminal offences. In an appeal by two small businessmen, Han and Yau, against a £67,000 fine, accountancy firm PricewaterhouseCoopers (PwC) argued that Customs & Excise procedures breached their human rights in acting as ‘judge and jury’ in that the imposition of penalties meant such cases should be seen as criminal matters. Judge Stephen Oliver, president of the VAT & Duties Tribunal, in a preliminary ruling agreed that the case fell within the scope of the act, as it should be seen as criminal. Customs is expected to appeal, as the procedures it follows at present lead to far higher recoveries than would be possible through criminal action.