Watch Dealer Punished for Falsifying Customs Documents
Due to the fact that some countries assess a Value Added Tax (VAT) on imported goods, some buyers located in these countries might be tempted to request that the seller falsifies documents so the tax liability will be less of a financial burden. Basically, this would be like one of us asking our employer to enter a reduced number for the money made in a particular year on our tax forms. In essence, it is a way to reduce the amount of taxes you owe, which in addition to being illegal is also highly deplorable.
And so is Darren Reay, the man who traded used luxury watches on eBay and used his ill-gotten gains to live a lavish lifestyle of luxury.
In order to avoid paying his fair share of Value Added Tax, Reay fully admitted that he accurately described the watches he dealt as low-value precision instruments. That’s right, he blatantly lied.
But, you see, this story does have a rather happy ending. Reay was investigated and his crimes brought to light and in the end, he was ordered to be jailed for three years.
It gets better.
Reay’s home was searched and more than 800 watches were recovered. The presiding judge over the case ordered that all the watches be sold and the proceeds paid to HMRC (Her Majesty’s Revenue and Customs).
This story shows just why it is important you do business with a company that follows International laws. While we hear all too often stories about corporations finding loopholes to avoid paying their fair share of taxes, a gem of a story as this restores faith in the system.