Client Celebrates Win | HMRC Freezing Orders Set Aside
In several articles previously published on this website, we have outlined the legal scope for authorities to seek the seizure of assets, freezing of bank accounts and forfeiture of goods where it is believed that they may represent the proceeds of crime, pending further investigation.
The legal team at KANGS recently assisted a client successfully set aside forfeiture proceedings initiated by HMRC in relation to funds in the client’s bank accounts, which were suspected to be proceeds of crime.
Tim Thompson of KANGS reports on this highly successful outcome achieved for our client.
The Background
In June 2023, HMRC obtained Account Freezing Orders under Section 303Z3(2) of the Proceeds of Crime Act 2002 against three bank accounts belonging to our client, including two accounts held by her children.
Despite KANGS providing HMRC with a detailed account showing the provenance of the funds, HMRC maintained its position and sought to obtain an Order of the Court authorising forfeiture of the seized funds.
As part of normal procedure, the Court ordered both parties to disclose and exchange documents, HMRC completely failed to comply with this Order.
The Successful Outcome
In view of HMRC’s non-compliance with the Order, we prepared and submitted an application to the Court to set aside the Account Freezing Orders under s.303Z4(1)(b) Proceeds of Crime Act 2002, which states:
‘The relevant court may at any time vary or set aside an account freezing order on an application made by any person affected by the order.’
Following consideration of the detailed submissions, the Judge granted our application and ordered that all of the Account Freezing Orders that had been made in June 2023 be set aside. Furthermore, we successfully obtained a Court Order requiring HMRC to pay our client’s costs.
Naturally, our client is extremely relieved to be able to manage her bank accounts as normal, freed of any restrictions.
How We Assisted Our Client
In the pursuit of this highly successful outcome the KANGS Team:
- examined all of the evidence supporting our client’s claims as to the provenance of the funds held in her accounts and collated all accompanying requisite documents,
- advised our client upon her position and the steps required to oppose the applications made by HMRC,
- examined all of the evidence relied upon by HMRC, taking our client’s detailed instructions,
- prepared our client’s detailed Witness Statement,
- endeavoured to engage HMRC in meaningful discussions,
- prepared for and attended all Court Hearings.
How Can We Assist?
Our Team is regularly called upon to assist clients, both individuals and companies, whose assets have become subject to Restraint and Freezing Orders obtained against their goods or bank accounts by HMRC and other authorities.
Inevitably, the imposition of any such Order is immediately prohibitive and requires experienced professional attention to seek to resolve the position as soon as possible.
KANGS has a dedicated Team, specialising in representing clients whether companies, directors or individuals facing restraint and freezing applications of every nature, including those brought under the Proceeds of Crime Act 2002 (POCA).
If we can be off assistance, we would be delighted to hear from you. Contact us today using the details below:
Tel: 0333 370 4333
Email: info@kangssolicitors.co.uk
We provide initial no obligation discussion at our three offices in London, Birmingham, and Manchester. Alternatively, discussions can be held through live conferencing or telephone.
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