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HMRC adult entertainment taskforce to get to the bottom of tax fraud Strippers told to bare all about tax affairs under HMRC crackdown
(35 minutes later)
Strippers, escort agencies and lap dancing clubs have been told to bare all to an “adult entertainment taskforce” set up to tease out millions of pounds of unpaid income tax. Strippers, escort agencies and lap dancing clubs have been told to reveal all to an “adult entertainment taskforce” set up to tease out millions of pounds of unpaid income tax.
HMRC officials said they will strip tax-dodging club owners of their profits in a probe aimed at traders and entertainers evading VAT, income tax and national insurance.HMRC officials said they will strip tax-dodging club owners of their profits in a probe aimed at traders and entertainers evading VAT, income tax and national insurance.
HMRC estimates that some club owners and online escort agencies are earning thousands of pounds a day but hiding the payments from officials.HMRC estimates that some club owners and online escort agencies are earning thousands of pounds a day but hiding the payments from officials.
The rise of the internet has caused “a drastic increase in online escort agencies” said HMRC, which estimates that the adult entertainment industry could be worth up to £5bn.The rise of the internet has caused “a drastic increase in online escort agencies” said HMRC, which estimates that the adult entertainment industry could be worth up to £5bn.
Jim Stevenson, head of HMRC Taskforces, said: “Large numbers of people working in this industry are paying the tax they owe and they don’t have anything to worry about. The people being targeted by this taskforce have no intention of playing by the rules, and we won’t tolerate this.Jim Stevenson, head of HMRC Taskforces, said: “Large numbers of people working in this industry are paying the tax they owe and they don’t have anything to worry about. The people being targeted by this taskforce have no intention of playing by the rules, and we won’t tolerate this.
“No industry is safe where tax evasion is concerned – we won’t stop tracking people down and taking back what they owe.”“No industry is safe where tax evasion is concerned – we won’t stop tracking people down and taking back what they owe.”
It has set an initial target of raising £2.5m in unpaid tax from the industry.It has set an initial target of raising £2.5m in unpaid tax from the industry.
More than 140 HMRC taskforces have been launched since 2011 and have collected more than £404m, including £109m brought in during the first six months of this financial year.More than 140 HMRC taskforces have been launched since 2011 and have collected more than £404m, including £109m brought in during the first six months of this financial year.
Officials have previously targetted eBay traders, private tutors, Ann Summers parties, and the app economy – where sales may not have been declared to the taxman.Officials have previously targetted eBay traders, private tutors, Ann Summers parties, and the app economy – where sales may not have been declared to the taxman.
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HMRC highlighted an investigation which earlier this month led to the jailing of escort agency fraudster Janine Adeleke of Bexhill on Sea, East Sussex. She claimed to be unemployed but was running an escort agency, Carltons of London, that claimed to offer the “finest London escorts to gentlemen of distinction”.HMRC highlighted an investigation which earlier this month led to the jailing of escort agency fraudster Janine Adeleke of Bexhill on Sea, East Sussex. She claimed to be unemployed but was running an escort agency, Carltons of London, that claimed to offer the “finest London escorts to gentlemen of distinction”.
The investigation found that Adeleke had not declared any income, stealing more than £312,000 in unpaid income tax, national insurance and tax credits. At the same time, she fraudulently claimed more than £37,000 in income support and other state benefits, and laundered £157,000 of illicit cash.The investigation found that Adeleke had not declared any income, stealing more than £312,000 in unpaid income tax, national insurance and tax credits. At the same time, she fraudulently claimed more than £37,000 in income support and other state benefits, and laundered £157,000 of illicit cash.
Richard Las, deputy director of HMRC’s Fraud Investigation Service, said: “Adeleke broke the law to fund a lavish lifestyle and private education for her children, stealing money from vital public services designed to support and help struggling families.”Richard Las, deputy director of HMRC’s Fraud Investigation Service, said: “Adeleke broke the law to fund a lavish lifestyle and private education for her children, stealing money from vital public services designed to support and help struggling families.”
Investigators found that Adeleke had splashed out at least £120,000 on private schools while spending lavishly on beauty treatments and holidays. She was sentenced to three years in prison.Investigators found that Adeleke had splashed out at least £120,000 on private schools while spending lavishly on beauty treatments and holidays. She was sentenced to three years in prison.