Celebrities' luxury cars seized after tax scam

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Celebrities’ luxury cars seized after tax scam

By Cormac O’Keeffe
A LARGE number of mega-rich motorists have had their luxury cars seized as part of an operation into a car importation scam.

Customs has seized 75 deluxe cars, worth between €100,000 and €285,000 each, as part of a probe into VAT fraud.

Officials estimate a further 75 luxury cars will be impounded under Operation Viking by the year’s end.

Revenue officers have collected €1.2 million in taxes and penalties and expect to recoup a further €1m.

Some of the country’s top businessmen and socialites have been hit in the operation and had their cars impounded immediately.

“We are talking about a variety of people, including a number of rich and famous,” said Maria Meyler, a principal officer in customs.




“Many of them belong to a circle of friends who are linked socially or through business. One of the car owners was linked with nine or 10 other people involved.”

The cars seized include Aston Martins, Maseratis, Ferraris, Bentleys, Hummers, Porches and top-of-the-range BMWs.

Ms Meyler told the Sunday Business Post that a number of motorists resisted attempts to seize their cars.

“The gardaí have been called in to assist with seizures. There has been a number of incidents where threats have been made. People can become very attached to their cars - especially these types of cars.”

Under the scam, motorists avoid paying 21% VAT by exploiting a rule in the law which exempts people from paying tax if an imported car has more than 6,000 kilometres on the clock. Motorists dodge the tax by importing the car from the North or Britain, drive the 6,000km in the Republic and then declare it to customs as a newly acquired “old car”.

Drivers also cut their vehicle registration tax (VRT), which is charged at 30% of the selling price on the open market.

Motorists caught have been given bills ranging from €30,000 to €150,000 for the VAT and VRT owed, as well as penalties.

The tax dodge, known as ‘ageing’, emerged following an investigation in Dublin Port, called Operation April, last spring.

Operation Viking brought together tax and customs specialists within the Dublin region.

The unit is also investigating at least six garage owners, some of whom are suspected of facilitating the importation and sale of new cars on which VAT has not been paid.

“The operation has identified abuse by State residents but also by garages and car dealers operating here,” said Ms Meyler.

A Revenue spokesperson yesterday said similar operations were likely in other areas outside Dublin, but said they would be based on local conditions.

Revenue has a separate inquiry underway into tax evasion and VAT fraud in the motor industry in the south-west of the country.

http://www.examiner.ie/pport/web/ireland/Full_Story/did-sgAcgUMpy7qnIsg7OWirIStPSk.asp

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:eek:

HashSlinging

I think I'll have a coffee break now.

dudara

The obvious thing to do here would be to clock up the miles in the country of purchase, not in the Republic.

I won't blame anyone for trying to work around the law, but they deliberately flouted it.

528i

They've little for doing, should be out catching real criminals like shoplifters & car maxers.

HashSlinging

I'd like to find out where they are, take a few snaps for the "look what I seen today" thread.

Priceless!!!!!

impr0v

There was a picture on the front of the Business Post yesterday of a customs officers sitting in one car, perhaps a DB7 though i only got a quick glance, with a line of high priced machinery sitting next to it in a pound somewhere, like a still from Gone in 60 seconds.

jozi

What happens the cars? Do the owners get them back once they pay the taxes and fines etc.????

Or better......do we get to buy them cheap i think we should, tough luck to them so much money and they cant even part with a few thousands to be able to drive the call legit

green-blood

they deserve it to be honest, its sickening to see someone spending 5 times the average indutiral wage on a car and not being prepared to pay the correct taxes. This particular scam must really bite becasue in order to make it work you have to have paid the ful VAT price in the countryof origin, so then end up with VRT and VAT and a penalty here just makes the whole thing pointless. Awful thing is the public just see these cars as labels of the establishment, which is sad becasue they are amazing machines

all that said I heard this cusoms woman on Morning Ireland today, she was practically orgasmic with the excitement of catching these guys and bringin so much extra revenue... she apparently did all the ground work by observing the ferries in Dublin port on her own time at weekends - particularly sad!!

aphex™

While i don't like the practice, I don't understand how they are in Trouble. Ok if your car has 6000 miles on it when brought to the country, you don't pay tax. Its a stupid rule anyway. So they drove around Northern Ireland for a while.

Thats just tax avoidence, not evasion, isn't it? How can they get fined for that?

I'm not defending them or anything- i just didn't think taking advantage of tax loopholes would land you in serious trouble. After all people get paid good money to find tax loopholes.

dudara

HashSlinging wrote:

I'd like to find out where they are, take a few snaps for the "look what I seen today" thread.

Priceless!!!!!

From what the Sunday Business Post said, some of the cars are in the Customs Pound at Dublin Port. Apparently, it's the highest concentration of luxury cars in the country at the moment

green-blood

simple aphex, they didnt do that, they brought them in zero mileage used them here and waited till 6 month 6000k and registered them - that is something wrong, thing is now they just wont bring them in for 6 months, anyone with a secure lock-up in hollyhead will make a fortune

MercMad

I wonder if Louis' Bentley was nabbed ?

Or the Westlife boys cars !

Cant imagine any high society exec having a Hummer !!

Whilst I dont condone what they did I also have to be honest and say that if I had the money I'd probably try it myself "!

I mean it has beeen happening for years and the Customs boyz knew it. They were just waiting for the right time ...........it stood out a mile ! They waited until there was a huge number of well heeled folk about, for whom a CL Merc was just not anything special, and watched them import all these cars, one by one. Everyone thought the Custoimes dont know which cars come and go into the Country...............HA !

Anyway despite whats been said, I dontr believe there is a huge amount of money going to be paid here. I mean if you take a €250,000 car here then the amount due could be no more than €80,000 roughly. That isn't huge for these folk .........who will probably sell another car to pay that and then start again !

DubTony

green-blood wrote:

... This particular scam must really bite becasue in order to make it work you have to have paid the ful VAT price in the countryof origin, so then end up with VRT and VAT and a penalty here just makes the whole thing pointless.

In the UK transactions between VAT registered business are VAT free, the idea being that the VAT will be collected when the end user pays it. If you're registered for VAT here, you can show proof in the UK and they don't charge any VAT. Chances are these people showed their business VAT number and bought the cars VAT free. Lots of this stuff going on. There's another thread about it around here somewhere.

Mailman

At 250,000 my calculation is the direct loss to the echequer of VAT at 21% is 43388
Expecting that VRT at 6 months old with 6000 miles is 90% of full price then loss from VRT and VAT on VRT is 7500 which adds up to 50888.

Also remember that 250,000 which would have been spent locally is lost to the economy and yes I know that a lot of that 250000 goes out of country as invoice price of car. That money is not circulating in our economy generating prosperity.

This country has been disproportionately kind to our wealthiest residents over the last 15 years. These individuals decided to evade tax which leaves the low and middle income earners to pick up the tab.
I disagree with VRT. I'm fighting against it at the moment and driving certain people in Revenue demented but as long as it exists Irish residents are obligied to pay it.
Send them to jail, they're criminals who evade tax and have a free ride(no pun intended) at the expense of the rest of us.

If they have a problem with the tax then take to the streets and campaign against it. Don't evade the tax and pull up the wealth ladder leaving the rest of us to suffer an unjust taxation system.

kermit_ie

MercMad wrote:

Cant imagine any high society exec having a Hummer !!!

Brian McFadden has/had one doesn't he?

bazz26

kermit_ie wrote:

Brian McFadden has/had one doesn't he?

Didn't he trade her in for Delta?

Kersh

Cousin has a Hummer, Gallardo, Range Rover.. used to have a 360, 996 turbo and a navigator.. Im beginning to wonder..

lomb

Kersh wrote:

Cousin has a Hummer, Gallardo, Range Rover.. used to have a 360, 996 turbo and a navigator.. Im beginning to wonder..

what does he do for a living?

and even though the country is loosing 21% vat vat at 17.5 % is being paid in the uk.

Guy:Incognito

528i wrote:

They've little for doing, should be out catching real criminals like shoplifters & car maxers.

Customs dont have the power to go arresting people for shoplifting,this however is exactly their job. These people are costing the country more individually than a gang of shoplifters.

Guy:Incognito

kermit_ie wrote:

Brian McFadden has/had one doesn't he?

didnt think he'd fall into the "high flying exec" catagory.

drdre

the 1st page on the sunday business post showed 2 db9's not db7

also my dads friend got done for 3 cars db9,new range rover sports and a audi a8

the customs said they seized a 285,000 yoyo bmw i wonder what bmw that is.
these guys can get them backonly if they pay full vrt,vat,interest and alsoa fine for tying to evade tax.

also all their businesses and property will be checked as to how they got it.

anyway simply they are all screwed to bits:D

Kersh

He has a rich daddy.

drdre

i know they are big into clothing business and property,so have mad their money in the good old easy days.:D its 2 brothers that have these cars and many more like a4,golf gti blah blah blah,i'm gettin jealous:o

now its though to make a living like that.he has a f430 and his bro is gettin a cls 55 AMG coming very soon:mad:

Kersh

I know about it
In the past 18 months my 2 cousins ahve gone through 2 x5, 2 range rovers, a 360, a navigator, a hummer, 2 996, m3, m5 (new), gallardo, sl55amg, helicopter.

AMurphy

aphex&#8482 wrote:

While i don't like the practice, I don't understand how they are in Trouble. Ok if your car has 6000 miles on it when brought to the country, you don't pay tax. ..... After all people get paid good money to find tax loopholes.

New one to me. you do not pay tax (exactly what tax or taxes does one not pay.) or you do not pay as much of it. ie new car = 1005 of retail price, >6Kmls = 95% of retail price, still a lot of money on a Porsche.

one is duty bound to exploit loopholes.
just thought of a good summer job for students, Running about EU racking up >6Kmls for these poor souls who want to import cheap cars.

DubTony

Kersh wrote:

I know about it
In the past 18 months my 2 cousins ahve gone through 2 x5, 2 range rovers, a 360, a navigator, a hummer, 2 996, m3, m5 (new), gallardo, sl55amg, helicopter.

My cousin drives a Nissan Primera and masquerades as a taxi driver at night. Had a feeling he was up to something dodgy.

DubTony

lomb wrote:

what does he do for a living?

and even though the country is loosing 21% vat vat at 17.5 % is being paid in the uk.

The chances are there's no VAT at all being paid on these cars as they were more than likely bought for export. Also check my earlier post about how VAT is applied in the UK.

http://boards.ie/vbulletin/showpost.php?p=2969041&postcount=13

By registering the car in their own name, they avoid BIK as well. If the car was registered to a company, BIK would have to be paid by the individual. While the VAT could be reclaimed by a company, on a €100,000 company car there's a hell of a lot of personal tax to be paid.

drdre

kersh whos ur cousin, they must be really wealthy.:D

are they in dublin

Kersh

Yes, my uncle is. They just ask and get. That said, some of the cars could be long leased, I really dont know.

DubTony

drdre wrote:

kersh whos ur cousin, they must be really wealthy.:D

are they in dublin

Hey drdre, you looking to get married?

blastman

DubTony wrote:

The chances are there's no VAT at all being paid on these cars as they were more than likely bought for export. Also check my earlier post about how VAT is applied in the UK.

http://boards.ie/vbulletin/showpost.php?p=2969041&postcount=13

By registering the car in their own name, they avoid BIK as well. If the car was registered to a company, BIK would have to be paid by the individual. While the VAT could be reclaimed by a company, on a €100,000 company car there's a hell of a lot of personal tax to be paid.

Exactly. My reading of it was that there was a dodgy garage buying these cars from the manufacturers or main dealers to sell on, so Dodgy Garage Owner doesn't pay VAT. He then offers the car for sale in Ireland, because he then says that the car was sold for export and there is no VAT to be paid by the customer, so he's free and clear from any VAT obligation. Meanwhile, due to a clause in some customs regulation in Ireland, if a car is more than six months old or and/or (not sure whether it's one or other or both) 6000 miles on the clock, then you don't have to pay VAT here, so the D4 set could get new fancy machinery, while not paying the taxes they should be, just the really rub it in for the rest of us. Glad this has been stopped, would love to have been a fly on the wall for some of the seizures.