Bark & Co Solicitors London News-HMRC Crackdown on Offshore

Abbey Forwarding Limited was a reputable and established bonded warehouse which operated from

premises in east London from 1971 until the beginning of 2009. In February of 2009 Her

Majesty’s Revenue & Customs (“HMRC”) raised assessments against the company for

approximately £6 million and at an ex parte hearing successfully applied to have the company placed into provisional liquidation on the basis that the company had actively participated in diversion

fraud.

The HMRC appointed liquidator immediately brought proceedings against the directors for breach of fiduciary duty alleging fraud against 3 of the directors. The basis for the claim and provisional liquidation by HMRC was that the directors fraudulently, or in the alternative negligently, allowed loads of duty suspended alcohol to be illegally diverted and sold onto the UK market. 

 The claim was dismissed in its entirety. In his judgement Mr Justice Lewison determined that not only was there

insufficient evidence of any fraudulent behaviour on the part of the directors, but

that the loads of alcohol had in fact reached their destinations and there was

insufficient evidence to show any fraudulent diversion at all. The directors were fully exonerated and the liquidator

was ordered to pay damages to the directors as well as their costs.